Correlation Between EMCOR and 665859AP9
Specify exactly 2 symbols:
By analyzing existing cross correlation between EMCOR Group and NORTHERN TR P, you can compare the effects of market volatilities on EMCOR and 665859AP9 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 665859AP9. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCOR and 665859AP9.
Diversification Opportunities for EMCOR and 665859AP9
Very good diversification
The 3 months correlation between EMCOR and 665859AP9 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding EMCOR Group and NORTHERN TR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHERN TR P 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 665859AP9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHERN TR P has no effect on the direction of EMCOR i.e., EMCOR and 665859AP9 go up and down completely randomly.
Pair Corralation between EMCOR and 665859AP9
Considering the 90-day investment horizon EMCOR Group is expected to generate 4.54 times more return on investment than 665859AP9. However, EMCOR is 4.54 times more volatile than NORTHERN TR P. It trades about 0.25 of its potential returns per unit of risk. NORTHERN TR P is currently generating about -0.21 per unit of risk. If you would invest 46,150 in EMCOR Group on September 3, 2024 and sell it today you would earn a total of 4,862 from holding EMCOR Group or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
EMCOR Group vs. NORTHERN TR P
Performance |
| Timeline |
| EMCOR Group |
| NORTHERN TR P |
EMCOR and 665859AP9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMCOR and 665859AP9
The main advantage of trading using opposite EMCOR and 665859AP9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMCOR position performs unexpectedly, 665859AP9 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 665859AP9 will offset losses from the drop in 665859AP9's long position.The idea behind EMCOR Group and NORTHERN TR P 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.| 665859AP9 vs. Hurco Companies | 665859AP9 vs. Skyline | 665859AP9 vs. EMCOR Group | 665859AP9 vs. RBC Bearings Incorporated |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |