Correlation Between MSA Safety and BrightView Holdings

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

By analyzing existing cross correlation between MSA Safety and BrightView Holdings, you can compare the effects of market volatilities on MSA Safety and BrightView Holdings 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 MSA Safety with a short position of BrightView Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSA Safety and BrightView Holdings.

Diversification Opportunities for MSA Safety and BrightView Holdings

0.58

Correlation Coefficient

MSA Safety  BrightView Holdings

Very weak diversification

The 3 months correlation between MSA and BrightView is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding MSA Safety and BrightView Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightView Holdings and MSA Safety 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 MSA Safety are associated (or correlated) with BrightView Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightView Holdings has no effect on the direction of MSA Safety i.e., MSA Safety and BrightView Holdings go up and down completely randomly.

Pair Corralation between MSA Safety and BrightView Holdings

Considering the 90-day investment horizon MSA Safety is expected to generate 1.19 times less return on investment than BrightView Holdings. But when comparing it to its historical volatility, MSA Safety is 2.1 times less risky than BrightView Holdings. It trades about 0.22 of its potential returns per unit of risk. BrightView Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,381  in BrightView Holdings on April 25, 2025 and sell it today you would earn a total of  241.00  from holding BrightView Holdings or generate 17.45% return on investment over 90 days.

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

MSA Safety  vs.  BrightView Holdings

MSA Safety

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MSA Safety are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, MSA Safety sustained solid returns over the last few months and may actually be approaching a breakup point.

BrightView Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BrightView Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BrightView Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MSA Safety and BrightView Holdings

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

The idea behind MSA Safety and BrightView Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.