Correlation Between Mirion Technologies and Generac Holdings
Can any of the company-specific risk be diversified away by investing in both Mirion Technologies and Generac 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 Mirion Technologies and Generac Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirion Technologies and Generac Holdings, you can compare the effects of market volatilities on Mirion Technologies and Generac 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 Mirion Technologies with a short position of Generac Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirion Technologies and Generac Holdings.
Diversification Opportunities for Mirion Technologies and Generac Holdings
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mirion and Generac is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mirion Technologies and Generac Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generac Holdings 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 Generac Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generac Holdings has no effect on the direction of Mirion Technologies i.e., Mirion Technologies and Generac Holdings go up and down completely randomly.
Pair Corralation between Mirion Technologies and Generac Holdings
Considering the 90-day investment horizon Mirion Technologies is expected to generate 0.8 times more return on investment than Generac Holdings. However, Mirion Technologies is 1.25 times less risky than Generac Holdings. It trades about 0.1 of its potential returns per unit of risk. Generac Holdings is currently generating about 0.06 per unit of risk. If you would invest 789.00 in Mirion Technologies on August 27, 2024 and sell it today you would earn a total of 889.00 from holding Mirion Technologies or generate 112.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirion Technologies vs. Generac Holdings
Performance |
| Timeline |
| Mirion Technologies |
| Generac Holdings |
Mirion Technologies and Generac Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirion Technologies and Generac Holdings
The main advantage of trading using opposite Mirion Technologies and Generac Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirion Technologies position performs unexpectedly, Generac 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 Generac Holdings will offset losses from the drop in Generac Holdings' long position.| Mirion Technologies vs. Enpro Industries | Mirion Technologies vs. Graham | Mirion Technologies vs. CSW Industrials | Mirion Technologies vs. Gorman Rupp |
| Generac Holdings vs. Emerson Electric | Generac Holdings vs. Eaton PLC | Generac Holdings vs. Parker Hannifin | Generac Holdings vs. Illinois Tool Works |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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