Correlation Between Brockhaus Capital and EMCOR
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and EMCOR 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 Brockhaus Capital and EMCOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and EMCOR Group, you can compare the effects of market volatilities on Brockhaus Capital and EMCOR 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 Brockhaus Capital with a short position of EMCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and EMCOR.
Diversification Opportunities for Brockhaus Capital and EMCOR
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brockhaus and EMCOR is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and EMCOR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCOR Group and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with EMCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCOR Group has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and EMCOR go up and down completely randomly.
Pair Corralation between Brockhaus Capital and EMCOR
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 2.36 times more return on investment than EMCOR. However, Brockhaus Capital is 2.36 times more volatile than EMCOR Group. It trades about 0.07 of its potential returns per unit of risk. EMCOR Group is currently generating about -0.39 per unit of risk. If you would invest 2,300 in Brockhaus Capital Management on September 27, 2024 and sell it today you would earn a total of 90.00 from holding Brockhaus Capital Management or generate 3.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Brockhaus Capital Management vs. EMCOR Group
Performance |
Timeline |
Brockhaus Capital |
EMCOR Group |
Brockhaus Capital and EMCOR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brockhaus Capital and EMCOR
The main advantage of trading using opposite Brockhaus Capital and EMCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, EMCOR 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 EMCOR will offset losses from the drop in EMCOR's long position.Brockhaus Capital vs. Blackstone Group | Brockhaus Capital vs. The Bank of | Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. State Street |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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