Correlation Between Mistras and Civeo Corp

Can any of the company-specific risk be diversified away by investing in both Mistras and Civeo Corp 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 Civeo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mistras Group and Civeo Corp, you can compare the effects of market volatilities on Mistras and Civeo Corp 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 Civeo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Civeo Corp.

Diversification Opportunities for Mistras and Civeo Corp

0.18

Correlation Coefficient

Mistras  Civeo Corp

Average diversification

The 3 months correlation between Mistras and Civeo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Civeo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civeo Corp 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 Civeo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civeo Corp has no effect on the direction of Mistras i.e., Mistras and Civeo Corp go up and down completely randomly.

Pair Corralation between Mistras and Civeo Corp

Allowing for the 90-day total investment horizon Mistras Group is expected to generate 0.72 times more return on investment than Civeo Corp. However, Mistras Group is 1.4 times less risky than Civeo Corp. It trades about 0.13 of its potential returns per unit of risk. Civeo Corp is currently generating about 0.03 per unit of risk. If you would invest  899.00  in Mistras Group on December 28, 2024 and sell it today you would earn a total of  163.00  from holding Mistras Group or generate 18.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mistras Group  vs.  Civeo Corp

Mistras Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mistras Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Mistras reported solid returns over the last few months and may actually be approaching a breakup point.

Civeo Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Civeo Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Civeo Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Mistras and Civeo Corp

The main advantage of trading using opposite Mistras and Civeo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Civeo Corp 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 Civeo Corp will offset losses from the drop in Civeo Corp's long position.

The idea behind Mistras Group and Civeo Corp 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.