Correlation Between Mistras and Stantec

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

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

Diversification Opportunities for Mistras and Stantec

-0.49

Correlation Coefficient

Mistras  Stantec

Very good diversification

The 3 months correlation between Mistras and Stantec is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Stantec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stantec 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 Stantec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stantec has no effect on the direction of Mistras i.e., Mistras and Stantec go up and down completely randomly.

Pair Corralation between Mistras and Stantec

Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Stantec. In addition to that, Mistras is 2.5 times more volatile than Stantec. It trades about -0.08 of its total potential returns per unit of risk. Stantec is currently generating about 0.28 per unit of volatility. If you would invest  9,121  in Stantec on May 7, 2025 and sell it today you would earn a total of  1,880  from holding Stantec or generate 20.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mistras Group  vs.  Stantec

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.

Stantec

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stantec are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Stantec displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mistras and Stantec

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

The idea behind Mistras Group and Stantec 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.