Correlation Between Brookline Bancorp and Emclaire Financial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Brookline Bancorp and Emclaire Financial 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 Brookline Bancorp and Emclaire Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookline Bancorp and Emclaire Financial Corp, you can compare the effects of market volatilities on Brookline Bancorp and Emclaire Financial 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 Brookline Bancorp with a short position of Emclaire Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookline Bancorp and Emclaire Financial.

Diversification Opportunities for Brookline Bancorp and Emclaire Financial

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Brookline and Emclaire is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Brookline Bancorp and Emclaire Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emclaire Financial Corp and Brookline Bancorp 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 Brookline Bancorp are associated (or correlated) with Emclaire Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emclaire Financial Corp has no effect on the direction of Brookline Bancorp i.e., Brookline Bancorp and Emclaire Financial go up and down completely randomly.

Pair Corralation between Brookline Bancorp and Emclaire Financial

If you would invest  964.00  in Brookline Bancorp on December 30, 2023 and sell it today you would earn a total of  32.00  from holding Brookline Bancorp or generate 3.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy0.0%
ValuesDaily Returns

Brookline Bancorp  vs.  Emclaire Financial Corp

 Performance 
       Timeline  
Brookline Bancorp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Brookline Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Emclaire Financial Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Emclaire Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Emclaire Financial is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Brookline Bancorp and Emclaire Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Brookline Bancorp and Emclaire Financial

The main advantage of trading using opposite Brookline Bancorp and Emclaire Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookline Bancorp position performs unexpectedly, Emclaire Financial 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 Emclaire Financial will offset losses from the drop in Emclaire Financial's long position.
The idea behind Brookline Bancorp and Emclaire Financial Corp 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.
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Bonds Directory
Find actively traded corporate debentures issued by US companies
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules