Correlation Between Eastman Chemical and ETFS 1x
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and ETFS 1x 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 Eastman Chemical and ETFS 1x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical Co and ETFS 1x Daily, you can compare the effects of market volatilities on Eastman Chemical and ETFS 1x 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 Eastman Chemical with a short position of ETFS 1x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and ETFS 1x.
Diversification Opportunities for Eastman Chemical and ETFS 1x
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical Co and ETFS 1x Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS 1x Daily and Eastman Chemical 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 Eastman Chemical Co are associated (or correlated) with ETFS 1x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS 1x Daily has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and ETFS 1x go up and down completely randomly.
Pair Corralation between Eastman Chemical and ETFS 1x
If you would invest 10,660 in Eastman Chemical Co on August 28, 2024 and sell it today you would lose (18.00) from holding Eastman Chemical Co or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eastman Chemical Co vs. ETFS 1x Daily
Performance |
| Timeline |
| Eastman Chemical |
| ETFS 1x Daily |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Chemical and ETFS 1x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and ETFS 1x
The main advantage of trading using opposite Eastman Chemical and ETFS 1x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, ETFS 1x 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 ETFS 1x will offset losses from the drop in ETFS 1x's long position.| Eastman Chemical vs. UNIQA Insurance Group | Eastman Chemical vs. Westlake Chemical Corp | Eastman Chemical vs. Greenroc Mining PLC | Eastman Chemical vs. McEwen Mining |
| ETFS 1x vs. Taylor Maritime Investments | ETFS 1x vs. Lords Grp Trading | ETFS 1x vs. Hansa Investment | ETFS 1x vs. FC Investment Trust |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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