Correlation Between Brookline Bancorp and Emclaire Financial
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
Brookline Bancorp vs. Emclaire Financial Corp
Performance |
Timeline |
Brookline Bancorp |
Emclaire Financial Corp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
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.Brookline Bancorp vs. Qualys Inc | Brookline Bancorp vs. Anheuser Busch Inbev | Brookline Bancorp vs. Boston Beer | Brookline Bancorp vs. Uber Technologies |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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