Correlation Between Emerson Electric and 093662AJ3
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By analyzing existing cross correlation between Emerson Electric and HRB 25 15 JUL 28, you can compare the effects of market volatilities on Emerson Electric and 093662AJ3 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 093662AJ3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Electric and 093662AJ3.
Diversification Opportunities for Emerson Electric and 093662AJ3
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerson and 093662AJ3 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and HRB 25 15 JUL 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HRB 25 15 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 093662AJ3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HRB 25 15 has no effect on the direction of Emerson Electric i.e., Emerson Electric and 093662AJ3 go up and down completely randomly.
Pair Corralation between Emerson Electric and 093662AJ3
Considering the 90-day investment horizon Emerson Electric is expected to generate 1.85 times more return on investment than 093662AJ3. However, Emerson Electric is 1.85 times more volatile than HRB 25 15 JUL 28. It trades about 0.4 of its potential returns per unit of risk. HRB 25 15 JUL 28 is currently generating about -0.23 per unit of risk. If you would invest 10,936 in Emerson Electric on September 5, 2024 and sell it today you would earn a total of 2,404 from holding Emerson Electric or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Emerson Electric vs. HRB 25 15 JUL 28
Performance |
| Timeline |
| Emerson Electric |
| HRB 25 15 |
Emerson Electric and 093662AJ3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Electric and 093662AJ3
The main advantage of trading using opposite Emerson Electric and 093662AJ3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Electric position performs unexpectedly, 093662AJ3 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 093662AJ3 will offset losses from the drop in 093662AJ3's long position.| Emerson Electric vs. Dover | Emerson Electric vs. Parker Hannifin | Emerson Electric vs. Pentair PLC | Emerson Electric vs. Eaton PLC |
| 093662AJ3 vs. Emerson Electric | 093662AJ3 vs. Primoris Services | 093662AJ3 vs. Chart Industries | 093662AJ3 vs. ChampionX |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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