Correlation Between EMCOR and Signature Eyewear
Can any of the company-specific risk be diversified away by investing in both EMCOR and Signature Eyewear 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 EMCOR and Signature Eyewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMCOR Group and Signature Eyewear, you can compare the effects of market volatilities on EMCOR and Signature Eyewear 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 EMCOR with a short position of Signature Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCOR and Signature Eyewear.
Diversification Opportunities for EMCOR and Signature Eyewear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMCOR and Signature is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMCOR Group and Signature Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Eyewear and EMCOR 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 EMCOR Group are associated (or correlated) with Signature Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Eyewear has no effect on the direction of EMCOR i.e., EMCOR and Signature Eyewear go up and down completely randomly.
Pair Corralation between EMCOR and Signature Eyewear
If you would invest 21,440 in EMCOR Group on September 12, 2024 and sell it today you would earn a total of 26,547 from holding EMCOR Group or generate 123.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
EMCOR Group vs. Signature Eyewear
Performance |
| Timeline |
| EMCOR Group |
| Signature Eyewear |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EMCOR and Signature Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMCOR and Signature Eyewear
The main advantage of trading using opposite EMCOR and Signature Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMCOR position performs unexpectedly, Signature Eyewear 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 Signature Eyewear will offset losses from the drop in Signature Eyewear's long position.The idea behind EMCOR Group and Signature Eyewear 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.| Signature Eyewear vs. Jeld Wen Holding | Signature Eyewear vs. Lipocine | Signature Eyewear vs. EMCOR Group | Signature Eyewear vs. Asure Software |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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