You might expect the manufacturers(s) of enterprise-class data storage to have experienced some difficulties, based on this enormous shift in their “supplier power”. I am not an equity analyst at all, let alone an equity analyst for the data storage industry. But I do know that EMC, one of the big players, has experienced:

  • high volatility (β=1.57),  and
  • somewhat strong daily closing price correlation (0.683) with the S&P 500 since August 2005
  • slightly stronger correlation with the NASDAQ 100 (0.796) over the same time period.

There are, of course, a lot of things that go into the 10-year daily stock fluctuations of a company, but one thing’s for sure: if you had $1,000 to invest in August 2005, with hindsight, you probably wouldn’t have wanted to invest it in EMC