Correlation Between Senstar Technologies and Mistras
Can any of the company-specific risk be diversified away by investing in both Senstar Technologies and Mistras 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 Senstar Technologies and Mistras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senstar Technologies and Mistras Group, you can compare the effects of market volatilities on Senstar Technologies and Mistras 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 Senstar Technologies with a short position of Mistras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senstar Technologies and Mistras.
Diversification Opportunities for Senstar Technologies and Mistras
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senstar and Mistras is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Senstar Technologies and Mistras Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistras Group and Senstar Technologies 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 Senstar Technologies are associated (or correlated) with Mistras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mistras Group has no effect on the direction of Senstar Technologies i.e., Senstar Technologies and Mistras go up and down completely randomly.
Pair Corralation between Senstar Technologies and Mistras
Considering the 90-day investment horizon Senstar Technologies is expected to generate 1.42 times more return on investment than Mistras. However, Senstar Technologies is 1.42 times more volatile than Mistras Group. It trades about 0.16 of its potential returns per unit of risk. Mistras Group is currently generating about 0.04 per unit of risk. If you would invest 142.00 in Senstar Technologies on September 2, 2024 and sell it today you would earn a total of 173.00 from holding Senstar Technologies or generate 121.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senstar Technologies vs. Mistras Group
Performance |
| Timeline |
| Senstar Technologies |
| Mistras Group |
Senstar Technologies and Mistras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senstar Technologies and Mistras
The main advantage of trading using opposite Senstar Technologies and Mistras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senstar Technologies position performs unexpectedly, Mistras 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 Mistras will offset losses from the drop in Mistras' long position.The idea behind Senstar Technologies and Mistras Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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