EMR vs GHM: Correlation
Emerson Electric (EMR) and Graham Corporation (GHM) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMR and GHM?
Over the past 3 years, EMR and GHM moved with a correlation of 0.60, which is strong. The past 12 months show a weaker link (0.38) than the 3-year average (0.60). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 834.1 %².
Among the 47 assets we track against EMR, GHM ranks #23 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months GHM outperformed by 66.2 percentage points (+20.0% for EMR against +86.2% for GHM). One caveat on sizing: GHM is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
EMR vs GHM: side by side
| EMR (Emerson Electric) | GHM (Graham Corporation) | |
|---|---|---|
| 1-year return | +20.0% | +86.2% |
| 5-year return | +65.4% | +676.7% |
| Volatility (ann.) | 28.3% | 49.3% |
| Beta vs S&P 500 | 1.29 | 1.56 |
| Max drawdown (3Y) | -29.6% | -46.5% |
| Market cap | $88.0B | $1.1B |
| P/E (trailing) | 34.5 | 88.9 |
| Dividend yield | 1.39% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | EMR | GHM |
|---|---|---|
| 2022 | +5.7% | -22.7% |
| 2023 | +3.8% | +97.2% |
| 2024 | +29.7% | +134.4% |
| 2025 | +8.9% | +44.4% |
| 2026 | +20.2% | +45.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMR and GHM good diversifiers for each other?
To a limited degree. At 0.60 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EMR and GHM?
As of 2026-08-27, the correlation of weekly returns between EMR and GHM is 0.60 over 3 years, 0.38 over 1 year and 0.45 over 5 years.
Is GHM a good diversifier for EMR?
To a limited degree. At 0.60 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: EMR correlations · GHM correlations
