Correlation Between Mistras and Quad Graphics
Can any of the company-specific risk be diversified away by investing in both Mistras and Quad Graphics 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 Quad Graphics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Quad Graphics, you can compare the effects of market volatilities on Mistras and Quad Graphics 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 Quad Graphics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Quad Graphics.
Diversification Opportunities for Mistras and Quad Graphics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mistras and Quad is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Quad Graphics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quad Graphics 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 Quad Graphics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quad Graphics has no effect on the direction of Mistras i.e., Mistras and Quad Graphics go up and down completely randomly.
Pair Corralation between Mistras and Quad Graphics
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Quad Graphics. In addition to that, Mistras is 1.16 times more volatile than Quad Graphics. It trades about -0.12 of its total potential returns per unit of risk. Quad Graphics is currently generating about 0.32 per unit of volatility. If you would invest 520.00 in Quad Graphics on August 28, 2024 and sell it today you would earn a total of 197.00 from holding Quad Graphics or generate 37.88% 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. Quad Graphics
Performance |
| Timeline |
| Mistras Group |
| Quad Graphics |
Mistras and Quad Graphics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Quad Graphics
The main advantage of trading using opposite Mistras and Quad Graphics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Quad Graphics 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 Quad Graphics will offset losses from the drop in Quad Graphics' long position.| Mistras vs. Franklin Covey | Mistras vs. TransUnion | Mistras vs. ICF International | Mistras vs. Huron Consulting Group |
| Quad Graphics vs. Maximus | Quad Graphics vs. CBIZ Inc | Quad Graphics vs. First Advantage Corp | Quad Graphics vs. Network 1 Technologies |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |