Correlation Between Mistras and CSG Systems
Can any of the company-specific risk be diversified away by investing in both Mistras and CSG Systems 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 CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and CSG Systems International, you can compare the effects of market volatilities on Mistras and CSG Systems 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 CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and CSG Systems.
Diversification Opportunities for Mistras and CSG Systems
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mistras and CSG is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International 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 CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Mistras i.e., Mistras and CSG Systems go up and down completely randomly.
Pair Corralation between Mistras and CSG Systems
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the CSG Systems. In addition to that, Mistras is 2.26 times more volatile than CSG Systems International. It trades about -0.08 of its total potential returns per unit of risk. CSG Systems International is currently generating about 0.15 per unit of volatility. If you would invest 4,865 in CSG Systems International on August 30, 2024 and sell it today you would earn a total of 594.00 from holding CSG Systems International or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. CSG Systems International
Performance |
| Timeline |
| Mistras Group |
| CSG Systems International |
Mistras and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and CSG Systems
The main advantage of trading using opposite Mistras and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| CSG Systems vs. Oneconnect Financial Technology | CSG Systems vs. Global Business Travel | CSG Systems vs. Alight Inc | CSG Systems vs. CS Disco LLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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