Correlation Between Mistras and Brady
Can any of the company-specific risk be diversified away by investing in both Mistras and Brady 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 Brady into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Brady, you can compare the effects of market volatilities on Mistras and Brady 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 Brady. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Brady.
Diversification Opportunities for Mistras and Brady
Almost no diversification
The 3 months correlation between Mistras and Brady is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Brady in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brady 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 Brady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brady has no effect on the direction of Mistras i.e., Mistras and Brady go up and down completely randomly.
Pair Corralation between Mistras and Brady
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 1.4 times more return on investment than Brady. However, Mistras is 1.4 times more volatile than Brady. It trades about 0.19 of its potential returns per unit of risk. Brady is currently generating about 0.18 per unit of risk. If you would invest 775.00 in Mistras Group on June 11, 2025 and sell it today you would earn a total of 196.00 from holding Mistras Group or generate 25.29% 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. Brady
Performance |
| Timeline |
| Mistras Group |
| Brady |
Mistras and Brady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Brady
The main advantage of trading using opposite Mistras and Brady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Brady 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 Brady will offset losses from the drop in Brady's long position.| Mistras vs. Genpact Limited | Mistras vs. Broadridge Financial Solutions | Mistras vs. BrightView Holdings | Mistras vs. First Advantage Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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