Correlation Between Mistras and ICTS International
Can any of the company-specific risk be diversified away by investing in both Mistras and ICTS International 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 ICTS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and ICTS International NV, you can compare the effects of market volatilities on Mistras and ICTS International 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 ICTS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and ICTS International.
Diversification Opportunities for Mistras and ICTS International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mistras and ICTS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and ICTS International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICTS 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 ICTS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICTS International has no effect on the direction of Mistras i.e., Mistras and ICTS International go up and down completely randomly.
Pair Corralation between Mistras and ICTS International
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 0.78 times more return on investment than ICTS International. However, Mistras Group is 1.28 times less risky than ICTS International. It trades about 0.04 of its potential returns per unit of risk. ICTS International NV is currently generating about -0.04 per unit of risk. If you would invest 844.00 in Mistras Group on September 2, 2024 and sell it today you would earn a total of 87.00 from holding Mistras Group or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. ICTS International NV
Performance |
| Timeline |
| Mistras Group |
| ICTS International |
Mistras and ICTS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and ICTS International
The main advantage of trading using opposite Mistras and ICTS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, ICTS International 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 ICTS International will offset losses from the drop in ICTS International's long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| ICTS International vs. Seychelle Environmtl | ICTS International vs. Energy and Water | ICTS International vs. One World Universe | ICTS International vs. Vow ASA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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