Correlation Between Mistras and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Mistras and Cresud SACIF at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mistras and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Cresud SACIF y, you can compare the effects of market volatilities on Mistras and Cresud SACIF and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mistras with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Cresud SACIF.
Diversification Opportunities for Mistras and Cresud SACIF
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mistras and Cresud is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Mistras is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mistras Group are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Mistras i.e., Mistras and Cresud SACIF go up and down completely randomly.
Pair Corralation between Mistras and Cresud SACIF
Allowing for the 90-day total investment horizon Mistras is expected to generate 69.2 times less return on investment than Cresud SACIF. But when comparing it to its historical volatility, Mistras Group is 31.28 times less risky than Cresud SACIF. It trades about 0.04 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Cresud SACIF y on September 2, 2024 and sell it today you would earn a total of 58.00 from holding Cresud SACIF y or generate 138.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.43% |
| Values | Daily Returns |
Mistras Group vs. Cresud SACIF y
Performance |
| Timeline |
| Mistras Group |
| Cresud SACIF y |
Mistras and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Cresud SACIF
The main advantage of trading using opposite Mistras and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Cresud SACIF can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Cresud SACIF vs. Vast Renewables Limited | Cresud SACIF vs. 1847 Holdings LLC | Cresud SACIF vs. Westport Fuel Systems | Cresud SACIF vs. Brookfield Business Partners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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