Emerson Electric Correlations

EMR Stock

USD 113.11 1.31 1.17%

The current 90-days correlation between Emerson Electric and Dover is 0.77 (i.e., Poor diversification). The correlation of Emerson Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Emerson Electric Correlation With Market

Poor diversification

The correlation between Emerson Electric and DJI is 0.64 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Electric and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emerson Electric. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

To learn how to invest in Emerson Stock, please use our How to Invest in Emerson Electric guide.

Moving together with Emerson Stock

0.65	BW	Babcock Wilcox Enter	Pair Corr
0.86	HI	Hillenbrand	Pair Corr
0.85	IR	Ingersoll Rand	Pair Corr
0.8	PH	Parker Hannifin	Pair Corr
0.87	ENOV	Enovis Corp	Pair Corr
0.69	CMI	Cummins	Pair Corr
0.77	CXT	Crane NXT	Pair Corr
0.78	DOV	Dover	Pair Corr
0.65	ETN	Eaton PLC Sell-off Trend	Pair Corr
0.87	FLS	Flowserve	Pair Corr
0.77	GHM	Graham	Pair Corr
0.81	IEX	IDEX	Pair Corr
0.93	ITT	ITT Inc Sell-off Trend	Pair Corr
0.67	MIR	Mirion Technologies	Pair Corr
0.61	XMTR	Xometry	Pair Corr
0.9	PNR	Pentair PLC	Pair Corr
0.67	ROK	Rockwell Automation	Pair Corr
0.82	RRX	Regal Beloit	Pair Corr
0.75	SMR	Nuscale Power Corp	Pair Corr
0.67	SXI	Standex International	Pair Corr
0.81	SYM	Symbotic	Pair Corr

Moving against Emerson Stock

0.39

MWA

Mueller Water Products

Pair Corr

Related Correlations Analysis

	DOV	PH	PNR	ETN	ITW	AOS	CMI	ROK	IR
DOV		0.97	0.53	0.21	0.42	-0.05	0.84	0.62	0.48	DOV
PH	0.97		0.59	0.28	0.36	0.0	0.82	0.59	0.53	PH
PNR	0.53	0.59		0.86	0.09	0.56	0.57	0.57	0.93	PNR
ETN	0.21	0.28	0.86		-0.14	0.65	0.39	0.39	0.81	ETN
ITW	0.42	0.36	0.09	-0.14		0.31	0.3	0.47	0.18	ITW
AOS	-0.05	0.0	0.56	0.65	0.31		0.08	0.21	0.56	AOS
CMI	0.84	0.82	0.57	0.39	0.3	0.08		0.75	0.47	CMI
ROK	0.62	0.59	0.57	0.39	0.47	0.21	0.75		0.5	ROK
IR	0.48	0.53	0.93	0.81	0.18	0.56	0.47	0.5		IR
	DOV	PH	PNR	ETN	ITW	AOS	CMI	ROK	IR

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PH	+ 0.97	DOV
IR	+ 0.93	PNR
ETN	+ 0.86	PNR
CMI	+ 0.84	DOV
CMI	+ 0.82	PH
IR	+ 0.81	ETN

High negative correlations

ITW	- 0.14	ETN
AOS	- 0.05	DOV
AOS	- 0.0	PH

Risk-Adjusted Indicators

There is a big difference between Emerson Stock performing well and Emerson Electric Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Emerson Electric's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
DOV	1.12	(0.07)	(0.13)	1.96	(2.85)	8.86
PH	1.29	(0.03)	(0.10)	2.27	(3.50)	10.15
PNR	1.11	(0.23)	(0.30)	1.78	(2.61)	6.53
ETN	1.69	(0.19)	(0.27)	3.41	(3.54)	19.37
ITW	1.02	(0.05)	(0.13)	1.95	(2.48)	8.34
AOS	1.04	(0.08)	(0.21)	2.14	(2.36)	7.41
CMI	1.25	(0.11)	(0.19)	1.83	(3.32)	9.77
ROK	1.26	(0.15)	(0.22)	2.01	(2.63)	16.50
IR	1.29	(0.24)	(0.28)	2.34	(2.57)	10.46

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