Correlation Between SFL and Emera Maine
Can any of the company-specific risk be diversified away by investing in both SFL and Emera Maine 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 SFL and Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFL Corporation and Emera Maine PFD, you can compare the effects of market volatilities on SFL and Emera Maine 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 SFL with a short position of Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and Emera Maine.
Diversification Opportunities for SFL and Emera Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SFL and Emera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD and SFL 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 SFL Corporation are associated (or correlated) with Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of SFL i.e., SFL and Emera Maine go up and down completely randomly.
Pair Corralation between SFL and Emera Maine
If you would invest 9,825 in Emera Maine PFD on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Emera Maine PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
SFL Corp. vs. Emera Maine PFD
Performance |
| Timeline |
| SFL Corporation |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SFL and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFL and Emera Maine
The main advantage of trading using opposite SFL and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.The idea behind SFL Corporation and Emera Maine PFD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Emera Maine vs. Amkor Technology | Emera Maine vs. Asure Software | Emera Maine vs. Taiwan Semiconductor Manufacturing | Emera Maine vs. Kulicke and Soffa |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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