Correlation Between Emerson Electric and LINE
Can any of the company-specific risk be diversified away by investing in both Emerson Electric and LINE 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 Emerson Electric and LINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerson Electric and LINE Corporation, you can compare the effects of market volatilities on Emerson Electric and LINE 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 Emerson Electric with a short position of LINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Electric and LINE.
Diversification Opportunities for Emerson Electric and LINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerson and LINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and LINE Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINE and Emerson Electric 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 Emerson Electric are associated (or correlated) with LINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINE has no effect on the direction of Emerson Electric i.e., Emerson Electric and LINE go up and down completely randomly.
Pair Corralation between Emerson Electric and LINE
If you would invest 12,867 in Emerson Electric on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Emerson Electric or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Emerson Electric vs. LINE Corp.
Performance |
| Timeline |
| Emerson Electric |
| LINE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Emerson Electric and LINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Electric and LINE
The main advantage of trading using opposite Emerson Electric and LINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Electric position performs unexpectedly, LINE 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 LINE will offset losses from the drop in LINE's long position.| Emerson Electric vs. Victory Integrity Smallmid Cap | Emerson Electric vs. Hilton Worldwide Holdings | Emerson Electric vs. NVIDIA | Emerson Electric vs. JPMorgan Chase Co |
| LINE vs. Enersys | LINE vs. Advanced Micro Devices | LINE vs. CECO Environmental Corp | LINE vs. STMicroelectronics NV ADR |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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