Correlation Between EMC Public and Country Group

Can any of the company-specific risk be diversified away by investing in both EMC Public and Country Group 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 EMC Public and Country Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EMC Public and Country Group Holdings, you can compare the effects of market volatilities on EMC Public and Country Group 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 EMC Public with a short position of Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMC Public and Country Group.

Diversification Opportunities for EMC Public and Country Group

0.27

Correlation Coefficient

EMC Public  Country Group

Modest diversification

The 3 months correlation between EMC and Country is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding EMC Public and Country Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Holdings and EMC Public 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 EMC Public are associated (or correlated) with Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Holdings has no effect on the direction of EMC Public i.e., EMC Public and Country Group go up and down completely randomly.

Pair Corralation between EMC Public and Country Group

Assuming the 90 days trading horizon EMC Public is expected to generate 3.48 times more return on investment than Country Group. However, EMC Public is 3.48 times more volatile than Country Group Holdings. It trades about 0.03 of its potential returns per unit of risk. Country Group Holdings is currently generating about -0.26 per unit of risk. If you would invest  7.00  in EMC Public on October 26, 2024 and sell it today you would earn a total of  0.00  from holding EMC Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

EMC Public  vs.  Country Group Holdings

EMC Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EMC Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Country Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Country Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with EMC Public and Country Group

The main advantage of trading using opposite EMC Public and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMC Public position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group's long position.

The idea behind EMC Public and Country Group Holdings 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.