Correlation Between Mistras and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Mistras and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Dow Jones Industrial, you can compare the effects of market volatilities on Mistras and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Dow Jones.
Diversification Opportunities for Mistras and Dow Jones
Very good diversification
The 3 months correlation between Mistras and Dow is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Mistras i.e., Mistras and Dow Jones go up and down completely randomly.
Pair Corralation between Mistras and Dow Jones
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 4.28 times more return on investment than Dow Jones. However, Mistras is 4.28 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 387.00 in Mistras Group on August 24, 2024 and sell it today you would earn a total of 540.00 from holding Mistras Group or generate 139.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. Dow Jones Industrial
Performance |
| Timeline |
Mistras and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Mistras Group
Pair trading matchups for Mistras
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Mistras and Dow Jones
The main advantage of trading using opposite Mistras and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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