Correlation Between Mirion Technologies and ATS
Can any of the company-specific risk be diversified away by investing in both Mirion Technologies and ATS 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 Mirion Technologies and ATS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirion Technologies and ATS Corporation, you can compare the effects of market volatilities on Mirion Technologies and ATS 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 Mirion Technologies with a short position of ATS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirion Technologies and ATS.
Diversification Opportunities for Mirion Technologies and ATS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mirion and ATS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mirion Technologies and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation and Mirion Technologies 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 Mirion Technologies are associated (or correlated) with ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Mirion Technologies i.e., Mirion Technologies and ATS go up and down completely randomly.
Pair Corralation between Mirion Technologies and ATS
Considering the 90-day investment horizon Mirion Technologies is expected to generate 0.92 times more return on investment than ATS. However, Mirion Technologies is 1.09 times less risky than ATS. It trades about 0.33 of its potential returns per unit of risk. ATS Corporation is currently generating about 0.05 per unit of risk. If you would invest 1,421 in Mirion Technologies on August 27, 2024 and sell it today you would earn a total of 257.00 from holding Mirion Technologies or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirion Technologies vs. ATS Corp.
Performance |
| Timeline |
| Mirion Technologies |
| ATS Corporation |
Mirion Technologies and ATS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirion Technologies and ATS
The main advantage of trading using opposite Mirion Technologies and ATS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirion Technologies position performs unexpectedly, ATS 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 ATS will offset losses from the drop in ATS's long position.| Mirion Technologies vs. Enpro Industries | Mirion Technologies vs. Graham | Mirion Technologies vs. CSW Industrials | Mirion Technologies vs. Gorman Rupp |
| ATS vs. Aquagold International | ATS vs. Morningstar Unconstrained Allocation | ATS vs. High Yield Municipal Fund | ATS vs. Thrivent High Yield |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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