E M Correlations

Stocks . Sri Lanka . 
Stock . E M L
EMLN0000   3.30  0.20  5.71%   
The correlation of E M is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

E M Correlation With Market

Very good diversification

The correlation between E M L and DJI is -0.24 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding E M L and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to E M could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace E M when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back E M - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling E M L to buy it.

Moving together with EMLN0000 Stock

  0.78HNBFN0000 HNB FinancePairCorr
  0.64JATN0000 Jat Holdings PLCPairCorr
  0.68LCBFN0000 Lanka CreditPairCorr
  0.65VLLX0000 VIDULLANKA PLCPairCorr
  0.72PACKN0000 EX PACK RUGATEDPairCorr

Moving against EMLN0000 Stock

  0.56SFCLN0000 Senkadagala Finance PLCPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
SEYBX0000
+ 0.96
SEYBN0000
DISTN0000
+ 0.95
JINSN0000
DISTN0000
+ 0.9
SEYBN0000
JINSN0000
+ 0.89
SEYBN0000
JINSN0000
+ 0.83
SEYBX0000
DISTN0000
+ 0.78
SEYBX0000
  
High negative correlations   
LIONN0000
- 0.09
ASCON0000
ASCON0000
- 0.06
SINHN0000

Risk-Adjusted Indicators

There is a big difference between EMLN0000 Stock performing well and E M Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze E M's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in E M without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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