Correlation Between Cordiant Digital and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both Cordiant Digital and Eastman Chemical 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 Cordiant Digital and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cordiant Digital Infrastructure and Eastman Chemical Co, you can compare the effects of market volatilities on Cordiant Digital and Eastman Chemical 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 Cordiant Digital with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cordiant Digital and Eastman Chemical.
Diversification Opportunities for Cordiant Digital and Eastman Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cordiant and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cordiant Digital Infrastructur and Eastman Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Cordiant Digital 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 Cordiant Digital Infrastructure are associated (or correlated) with Eastman Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Chemical has no effect on the direction of Cordiant Digital i.e., Cordiant Digital and Eastman Chemical go up and down completely randomly.
Pair Corralation between Cordiant Digital and Eastman Chemical
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 | 100.0% |
| Values | Daily Returns |
Cordiant Digital Infrastructur vs. Eastman Chemical Co
Performance |
| Timeline |
| Cordiant Digital Inf |
| Eastman Chemical |
Cordiant Digital and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cordiant Digital and Eastman Chemical
The main advantage of trading using opposite Cordiant Digital and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cordiant Digital position performs unexpectedly, Eastman Chemical 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 Eastman Chemical will offset losses from the drop in Eastman Chemical's long position.| Cordiant Digital vs. Samsung Electronics Co | Cordiant Digital vs. Samsung Electronics Co | Cordiant Digital vs. Hyundai Motor | Cordiant Digital vs. Toyota Motor Corp |
| Eastman Chemical vs. UNIQA Insurance Group | Eastman Chemical vs. Westlake Chemical Corp | Eastman Chemical vs. Greenroc Mining PLC | Eastman Chemical vs. McEwen Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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