Correlation Between Mistras and Kelly Services
Can any of the company-specific risk be diversified away by investing in both Mistras and Kelly Services 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 Kelly Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Kelly Services B, you can compare the effects of market volatilities on Mistras and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Kelly Services.
Diversification Opportunities for Mistras and Kelly Services
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mistras and Kelly is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Kelly Services B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services B 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services B has no effect on the direction of Mistras i.e., Mistras and Kelly Services go up and down completely randomly.
Pair Corralation between Mistras and Kelly Services
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 1.57 times more return on investment than Kelly Services. However, Mistras is 1.57 times more volatile than Kelly Services B. It trades about 0.07 of its potential returns per unit of risk. Kelly Services B is currently generating about 0.0 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. Kelly Services B
Performance |
| Timeline |
| Mistras Group |
| Kelly Services B |
Mistras and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Kelly Services
The main advantage of trading using opposite Mistras and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Kforce Inc | Kelly Services vs. Korn Ferry | Kelly Services vs. Kelly Services A |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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