Correlation Between Mistras and Robert Half

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

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

Diversification Opportunities for Mistras and Robert Half

-0.71

Correlation Coefficient

Mistras  Robert Half

Pay attention - limited upside

The 3 months correlation between Mistras and Robert is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International 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 Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of Mistras i.e., Mistras and Robert Half go up and down completely randomly.

Pair Corralation between Mistras and Robert Half

Allowing for the 90-day total investment horizon Mistras Group is expected to generate 0.92 times more return on investment than Robert Half. However, Mistras Group is 1.08 times less risky than Robert Half. It trades about 0.07 of its potential returns per unit of risk. Robert Half International is currently generating about -0.22 per unit of risk. If you would invest  928.00  in Mistras Group on November 27, 2024 and sell it today you would earn a total of  56.00  from holding Mistras Group or generate 6.03% 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.  Robert Half International

Mistras Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mistras Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Mistras may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Robert Half International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robert Half International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Mistras and Robert Half

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

The idea behind Mistras Group and Robert Half International 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.