Correlation Between Mistras and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Mistras and ExlService Holdings 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 ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and ExlService Holdings, you can compare the effects of market volatilities on Mistras and ExlService Holdings 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and ExlService Holdings.
Diversification Opportunities for Mistras and ExlService Holdings
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mistras and ExlService is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Mistras i.e., Mistras and ExlService Holdings go up and down completely randomly.
Pair Corralation between Mistras and ExlService Holdings
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 1.77 times more return on investment than ExlService Holdings. However, Mistras is 1.77 times more volatile than ExlService Holdings. It trades about 0.06 of its potential returns per unit of risk. ExlService Holdings is currently generating about 0.06 per unit of risk. If you would invest 552.00 in Mistras Group on November 19, 2024 and sell it today you would earn a total of 456.00 from holding Mistras Group or generate 82.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. ExlService Holdings
Performance |
| Timeline |
| Mistras Group |
| ExlService Holdings |
Mistras and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and ExlService Holdings
The main advantage of trading using opposite Mistras and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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