Correlation Between Concrete Pumping and EMCOR
Can any of the company-specific risk be diversified away by investing in both Concrete Pumping and EMCOR 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 Concrete Pumping and EMCOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Pumping Holdings and EMCOR Group, you can compare the effects of market volatilities on Concrete Pumping and EMCOR 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 Concrete Pumping with a short position of EMCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and EMCOR.
Diversification Opportunities for Concrete Pumping and EMCOR
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concrete and EMCOR is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Pumping Holdings and EMCOR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCOR Group and Concrete Pumping 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 Concrete Pumping Holdings are associated (or correlated) with EMCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCOR Group has no effect on the direction of Concrete Pumping i.e., Concrete Pumping and EMCOR go up and down completely randomly.
Pair Corralation between Concrete Pumping and EMCOR
If you would invest 46,635 in EMCOR Group on October 26, 2024 and sell it today you would earn a total of 6,530 from holding EMCOR Group or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Concrete Pumping Holdings vs. EMCOR Group
Performance |
| Timeline |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EMCOR Group |
Concrete Pumping and EMCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Pumping and EMCOR
The main advantage of trading using opposite Concrete Pumping and EMCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Pumping position performs unexpectedly, EMCOR 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 EMCOR will offset losses from the drop in EMCOR's long position.| Concrete Pumping vs. Sensient Technologies | Concrete Pumping vs. Origin Materials | Concrete Pumping vs. Park Electrochemical | Concrete Pumping vs. Exchange Bankshares |
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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