Correlation Between Emerson Electric and 00108WAF7
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By analyzing existing cross correlation between Emerson Electric and AEP TEX INC, you can compare the effects of market volatilities on Emerson Electric and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Electric and 00108WAF7.
Diversification Opportunities for Emerson Electric and 00108WAF7
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerson and 00108WAF7 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of Emerson Electric i.e., Emerson Electric and 00108WAF7 go up and down completely randomly.
Pair Corralation between Emerson Electric and 00108WAF7
Considering the 90-day investment horizon Emerson Electric is expected to generate 0.83 times more return on investment than 00108WAF7. However, Emerson Electric is 1.2 times less risky than 00108WAF7. It trades about 0.4 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.3 per unit of risk. If you would invest 10,846 in Emerson Electric on August 30, 2024 and sell it today you would earn a total of 2,413 from holding Emerson Electric or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
Emerson Electric vs. AEP TEX INC
Performance |
| Timeline |
| Emerson Electric |
| AEP TEX INC |
Emerson Electric and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Electric and 00108WAF7
The main advantage of trading using opposite Emerson Electric and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Electric position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| Emerson Electric vs. Dover | Emerson Electric vs. Parker Hannifin | Emerson Electric vs. Pentair PLC | Emerson Electric vs. Eaton PLC |
| 00108WAF7 vs. Esperion Therapeutics | 00108WAF7 vs. Emerson Electric | 00108WAF7 vs. Merit Medical Systems | 00108WAF7 vs. Primoris Services |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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