Correlation Between MSA Safety and Mistras
Can any of the company-specific risk be diversified away by investing in both MSA Safety 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 MSA Safety and Mistras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSA Safety and Mistras Group, you can compare the effects of market volatilities on MSA Safety 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 MSA Safety with a short position of Mistras. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSA Safety and Mistras.
Diversification Opportunities for MSA Safety and Mistras
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MSA and Mistras is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MSA Safety and Mistras Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistras Group and MSA Safety 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 MSA Safety 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 MSA Safety i.e., MSA Safety and Mistras go up and down completely randomly.
Pair Corralation between MSA Safety and Mistras
Considering the 90-day investment horizon MSA Safety is expected to generate 0.62 times more return on investment than Mistras. However, MSA Safety is 1.62 times less risky than Mistras. It trades about 0.09 of its potential returns per unit of risk. Mistras Group is currently generating about -0.17 per unit of risk. If you would invest 15,067 in MSA Safety on March 23, 2025 and sell it today you would earn a total of 1,418 from holding MSA Safety or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSA Safety vs. Mistras Group
Performance |
| Timeline |
| MSA Safety |
| Mistras Group |
MSA Safety and Mistras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSA Safety and Mistras
The main advantage of trading using opposite MSA Safety and Mistras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSA Safety 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.| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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