Correlation Between Emerson Radio and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Emerson Radio and Proficient Auto 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 Radio and Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerson Radio and Proficient Auto Logistics,, you can compare the effects of market volatilities on Emerson Radio and Proficient Auto 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 Radio with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Radio and Proficient Auto.
Diversification Opportunities for Emerson Radio and Proficient Auto
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emerson and Proficient is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Radio and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Emerson Radio 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 Radio are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Emerson Radio i.e., Emerson Radio and Proficient Auto go up and down completely randomly.
Pair Corralation between Emerson Radio and Proficient Auto
Considering the 90-day investment horizon Emerson Radio is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Emerson Radio is 1.14 times less risky than Proficient Auto. The stock trades about -0.27 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 843.00 in Proficient Auto Logistics, on August 27, 2024 and sell it today you would earn a total of 180.00 from holding Proficient Auto Logistics, or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerson Radio vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Emerson Radio |
| Proficient Auto Logi |
Emerson Radio and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Radio and Proficient Auto
The main advantage of trading using opposite Emerson Radio and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Radio position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Emerson Radio vs. VOXX International | Emerson Radio vs. LG Display Co | Emerson Radio vs. Vizio Holding Corp | Emerson Radio vs. Turtle Beach Corp |
| Proficient Auto vs. Summa Silver Corp | Proficient Auto vs. Mangazeya Mining | Proficient Auto vs. Sweetgreen | Proficient Auto vs. NioCorp Developments Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |