Correlation Between ATVRockN and Mirion Technologies

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

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

Diversification Opportunities for ATVRockN and Mirion Technologies

-0.56

Correlation Coefficient

ATVRockN  Mirion Technologies

Excellent diversification

The 3 months correlation between ATVRockN and Mirion is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ATVRockN and Mirion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirion Technologies and ATVRockN 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 ATVRockN 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 ATVRockN i.e., ATVRockN and Mirion Technologies go up and down completely randomly.

Pair Corralation between ATVRockN and Mirion Technologies

Given the investment horizon of 90 days ATVRockN is expected to generate 8.34 times more return on investment than Mirion Technologies. However, ATVRockN is 8.34 times more volatile than Mirion Technologies. It trades about 0.02 of its potential returns per unit of risk. Mirion Technologies is currently generating about -0.04 per unit of risk. If you would invest  0.12  in ATVRockN on December 2, 2024 and sell it today you would lose (0.02) from holding ATVRockN or give up 16.67% of portfolio value over 90 days.

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

ATVRockN  vs.  Mirion Technologies

ATVRockN

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ATVRockN are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, ATVRockN disclosed solid returns over the last few months and may actually be approaching a breakup point.

Mirion Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mirion Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Mirion Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ATVRockN and Mirion Technologies

The main advantage of trading using opposite ATVRockN and Mirion Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATVRockN 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.

The idea behind ATVRockN and Mirion Technologies 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.