Correlation Between Mistras and Blue Sphere

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

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

Diversification Opportunities for Mistras and Blue Sphere

-0.07

Correlation Coefficient

Mistras  Blue Sphere

Good diversification

The 3 months correlation between Mistras and Blue is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere 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 Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of Mistras i.e., Mistras and Blue Sphere go up and down completely randomly.

Pair Corralation between Mistras and Blue Sphere

Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Blue Sphere. But the stock apears to be less risky and, when comparing its historical volatility, Mistras Group is 138.99 times less risky than Blue Sphere. The stock trades about -0.1 of its potential returns per unit of risk. The Blue Sphere Corp is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Blue Sphere Corp on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Blue Sphere Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Mistras Group  vs.  Blue Sphere Corp

Mistras Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mistras Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Blue Sphere Corp

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mistras and Blue Sphere

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

The idea behind Mistras Group and Blue Sphere 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.