Correlation Between Emerson Electric and 577778BQ5
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By analyzing existing cross correlation between Emerson Electric and MAY DEPT STORES, you can compare the effects of market volatilities on Emerson Electric and 577778BQ5 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 577778BQ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Electric and 577778BQ5.
Diversification Opportunities for Emerson Electric and 577778BQ5
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Emerson and 577778BQ5 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and MAY DEPT STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAY DEPT STORES 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 577778BQ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAY DEPT STORES has no effect on the direction of Emerson Electric i.e., Emerson Electric and 577778BQ5 go up and down completely randomly.
Pair Corralation between Emerson Electric and 577778BQ5
Considering the 90-day investment horizon Emerson Electric is expected to generate 0.44 times more return on investment than 577778BQ5. However, Emerson Electric is 2.3 times less risky than 577778BQ5. It trades about 0.1 of its potential returns per unit of risk. MAY DEPT STORES is currently generating about 0.02 per unit of risk. If you would invest 10,479 in Emerson Electric on September 3, 2024 and sell it today you would earn a total of 2,781 from holding Emerson Electric or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 37.67% |
| Values | Daily Returns |
Emerson Electric vs. MAY DEPT STORES
Performance |
| Timeline |
| Emerson Electric |
| MAY DEPT STORES |
Emerson Electric and 577778BQ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Electric and 577778BQ5
The main advantage of trading using opposite Emerson Electric and 577778BQ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Electric position performs unexpectedly, 577778BQ5 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 577778BQ5 will offset losses from the drop in 577778BQ5's long position.| Emerson Electric vs. Dover | Emerson Electric vs. Parker Hannifin | Emerson Electric vs. Pentair PLC | Emerson Electric vs. Eaton PLC |
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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