Embraer SA Correlations

ERJ Stock

USD 49.30 1.74 3.41%

The current 90-days correlation between Embraer SA ADR and Textron is 0.2 (i.e., Modest diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Embraer SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Embraer SA ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Embraer SA Correlation With Market

Weak diversification

The correlation between Embraer SA ADR and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Embraer SA ADR and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Embraer Stock

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

Moving together with Embraer Stock

0.73	AZ	A2Z Smart Technologies	Pair Corr
0.67	BA	Boeing	Pair Corr
0.77	CW	Curtiss Wright	Pair Corr
0.75	GD	General Dynamics Earnings Call This Week	Pair Corr
0.68	GE	GE Aerospace Earnings Call This Week	Pair Corr
0.82	PL	Planet Labs PBC	Pair Corr
0.66	BA-PA	Boeing	Pair Corr
0.73	VTSI	VirTra Inc	Pair Corr
0.71	ESLT	Elbit Systems	Pair Corr
0.82	EVEX	Eve Holding Downward Rally	Pair Corr
0.73	EVTL	Vertical Aerospace Trending	Pair Corr
0.73	AIR	AAR Corp	Pair Corr
0.84	CAE	CAE Inc	Pair Corr
0.83	DCO	Ducommun Incorporated	Pair Corr
0.75	DRS	Leonardo DRS, Common	Pair Corr
0.8	HEI	Heico	Pair Corr
0.8	HII	Huntington Ingalls	Pair Corr
0.74	HWM	Howmet Aerospace	Pair Corr
0.7	HXL	Hexcel Earnings Call This Week	Pair Corr
0.71	LHX	L3Harris Technologies Earnings Call This Week	Pair Corr
0.79	NPK	National Presto Indu Earnings Call This Week	Pair Corr
0.75	RTX	Raytheon Technologies Earnings Call This Week	Pair Corr
0.69	SIF	SIFCO Industries	Pair Corr
0.67	SPR	Spirit Aerosystems	Pair Corr
0.72	TDG	Transdigm Group	Pair Corr
0.64	TGI	Triumph Group Sell-off Trend	Pair Corr
0.82	TXT	Textron Earnings Call This Week	Pair Corr
0.81	WWD	Woodward	Pair Corr

Moving against Embraer Stock

0.48	SATLW	Satellogic Warrant	Pair Corr
0.35	RGR	Sturm Ruger	Pair Corr
0.36	GPUS	Hyperscale Data, Symbol Change	Pair Corr
0.36	SHMDW	SCHMID Group NV	Pair Corr

Related Correlations Analysis

	EVEX	TXT	MRCY	AIR	DRS	BBD	GGB	ITUB	SID
EVEX		0.91	0.6	0.91	0.87	0.83	0.83	0.59	-0.63	EVEX
TXT	0.91		0.48	0.95	0.92	0.86	0.82	0.69	-0.49	TXT
MRCY	0.6	0.48		0.57	0.63	0.49	0.63	0.3	-0.51	MRCY
AIR	0.91	0.95	0.57		0.94	0.83	0.81	0.61	-0.59	AIR
DRS	0.87	0.92	0.63	0.94		0.87	0.81	0.69	-0.53	DRS
BBD	0.83	0.86	0.49	0.83	0.87		0.87	0.88	-0.56	BBD
GGB	0.83	0.82	0.63	0.81	0.81	0.87		0.74	-0.46	GGB
ITUB	0.59	0.69	0.3	0.61	0.69	0.88	0.74		-0.25	ITUB
SID	-0.63	-0.49	-0.51	-0.59	-0.53	-0.56	-0.46	-0.25		SID
	EVEX	TXT	MRCY	AIR	DRS	BBD	GGB	ITUB	SID

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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

AIR	+ 0.95	TXT
DRS	+ 0.94	AIR
DRS	+ 0.92	TXT
TXT	+ 0.91	EVEX
AIR	+ 0.91	EVEX
ITUB	+ 0.88	BBD

High negative correlations

SID	- 0.63	EVEX
SID	- 0.59	AIR
SID	- 0.56	BBD
SID	- 0.53	DRS
SID	- 0.51	MRCY
SID	- 0.49	TXT

Risk-Adjusted Indicators

There is a big difference between Embraer Stock performing well and Embraer SA 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 Embraer SA'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	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
EVEX	3.83	0.75	0.23	0.44	3.45	(4.53)	11.87	(6.90)	21.29
TXT	1.01	0.25	0.22	0.36	0.75	(1.20)	2.57	(1.42)	9.58
MRCY	1.71	0.12	0.01	0.52	2.58	(1.53)	3.68	(4.00)	11.63
AIR	1.32	0.56	0.40	0.78	0.72	(1.65)	3.07	(1.78)	5.63
DRS	1.65	0.42	0.17	1.12	1.76	(1.87)	3.78	(2.99)	14.07
BBD	1.44	0.39	0.18	1.35	1.10	(1.87)	3.17	(2.43)	21.83
GGB	1.77	0.11	0.03	0.30	1.74	(2.22)	4.80	(3.17)	10.58
ITUB	1.14	0.16	0.05	0.62	1.19	(1.43)	2.70	(2.33)	10.38
SID	2.23	(0.23)	0.00	(0.10)	0.00	0.00	4.38	(5.59)	13.28

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