Correlation Between Mistras and Perma Fix

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

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

Diversification Opportunities for Mistras and Perma Fix

0.01

Correlation Coefficient

Mistras  Perma Fix

Significant diversification

The 3 months correlation between Mistras and Perma is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Perma Fix Environmental Svcs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perma Fix Environmental 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 Perma Fix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perma Fix Environmental has no effect on the direction of Mistras i.e., Mistras and Perma Fix go up and down completely randomly.

Pair Corralation between Mistras and Perma Fix

Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Perma Fix. But the stock apears to be less risky and, when comparing its historical volatility, Mistras Group is 1.05 times less risky than Perma Fix. The stock trades about -0.1 of its potential returns per unit of risk. The Perma Fix Environmental Svcs is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  875.00  in Perma Fix Environmental Svcs on May 6, 2025 and sell it today you would earn a total of  280.50  from holding Perma Fix Environmental Svcs or generate 32.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Mistras Group  vs.  Perma Fix Environmental Svcs

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.

Perma Fix Environmental

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perma Fix Environmental Svcs are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Perma Fix demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mistras and Perma Fix

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

The idea behind Mistras Group and Perma Fix Environmental Svcs 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 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.