Correlation Between Eastman Chemical and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and CHINA TONTINE 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 CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and CHINA TONTINE WINES, you can compare the effects of market volatilities on Eastman Chemical and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and CHINA TONTINE.
Diversification Opportunities for Eastman Chemical and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Eastman Chemical and CHINA TONTINE
If you would invest 7.00 in CHINA TONTINE WINES on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Eastman Chemical |
| CHINA TONTINE WINES |
Eastman Chemical and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and CHINA TONTINE
The main advantage of trading using opposite Eastman Chemical and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Eastman Chemical vs. AIR LIQUIDE ADR | Eastman Chemical vs. Shin Etsu Chemical Co | Eastman Chemical vs. Ganfeng Lithium Co | Eastman Chemical vs. Superior Plus Corp |
| CHINA TONTINE vs. REINET INVESTMENTS SCA | CHINA TONTINE vs. SLR Investment Corp | CHINA TONTINE vs. Benchmark Electronics | CHINA TONTINE vs. Postal Savings Bank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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