Correlation Between Graham and Mirion Technologies
Can any of the company-specific risk be diversified away by investing in both Graham and Mirion Technologies 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 Graham and Mirion Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham and Mirion Technologies, you can compare the effects of market volatilities on Graham and Mirion Technologies 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 Graham with a short position of Mirion Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham and Mirion Technologies.
Diversification Opportunities for Graham and Mirion Technologies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Graham and Mirion is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Graham and Mirion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirion Technologies and Graham 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 Graham are associated (or correlated) with Mirion Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirion Technologies has no effect on the direction of Graham i.e., Graham and Mirion Technologies go up and down completely randomly.
Pair Corralation between Graham and Mirion Technologies
Considering the 90-day investment horizon Graham is expected to generate 1.93 times more return on investment than Mirion Technologies. However, Graham is 1.93 times more volatile than Mirion Technologies. It trades about 0.43 of its potential returns per unit of risk. Mirion Technologies is currently generating about 0.31 per unit of risk. If you would invest 2,957 in Graham on August 27, 2024 and sell it today you would earn a total of 1,476 from holding Graham or generate 49.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham vs. Mirion Technologies
Performance |
| Timeline |
| Graham |
| Mirion Technologies |
Graham and Mirion Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham and Mirion Technologies
The main advantage of trading using opposite Graham and Mirion Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham position performs unexpectedly, Mirion Technologies 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 Mirion Technologies will offset losses from the drop in Mirion Technologies' long position.| Graham vs. Aquagold International | Graham vs. Morningstar Unconstrained Allocation | Graham vs. High Yield Municipal Fund | Graham vs. Thrivent High Yield |
| Mirion Technologies vs. Enpro Industries | Mirion Technologies vs. Graham | Mirion Technologies vs. CSW Industrials | Mirion Technologies vs. Gorman Rupp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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