Correlation Between Mirion Technologies and Enerpac Tool
Can any of the company-specific risk be diversified away by investing in both Mirion Technologies and Enerpac Tool 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 Enerpac Tool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirion Technologies and Enerpac Tool Group, you can compare the effects of market volatilities on Mirion Technologies and Enerpac Tool 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 Enerpac Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirion Technologies and Enerpac Tool.
Diversification Opportunities for Mirion Technologies and Enerpac Tool
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mirion and Enerpac is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mirion Technologies and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group 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 Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of Mirion Technologies i.e., Mirion Technologies and Enerpac Tool go up and down completely randomly.
Pair Corralation between Mirion Technologies and Enerpac Tool
Considering the 90-day investment horizon Mirion Technologies is expected to generate 0.93 times more return on investment than Enerpac Tool. However, Mirion Technologies is 1.08 times less risky than Enerpac Tool. It trades about 0.21 of its potential returns per unit of risk. Enerpac Tool Group is currently generating about 0.17 per unit of risk. If you would invest 1,475 in Mirion Technologies on August 31, 2024 and sell it today you would earn a total of 153.00 from holding Mirion Technologies or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirion Technologies vs. Enerpac Tool Group
Performance |
| Timeline |
| Mirion Technologies |
| Enerpac Tool Group |
Mirion Technologies and Enerpac Tool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirion Technologies and Enerpac Tool
The main advantage of trading using opposite Mirion Technologies and Enerpac Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirion Technologies position performs unexpectedly, Enerpac Tool 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 Enerpac Tool will offset losses from the drop in Enerpac Tool's long position.| Mirion Technologies vs. Enerpac Tool Group | Mirion Technologies vs. Enpro Industries | Mirion Technologies vs. Omega Flex | Mirion Technologies vs. Gorman Rupp |
| Enerpac Tool vs. Flowserve | Enerpac Tool vs. Franklin Electric Co | Enerpac Tool vs. Watts Water Technologies | Enerpac Tool 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |