Correlation Between Eastman Chemical and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Cedar Realty 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 Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Cedar Realty Trust, you can compare the effects of market volatilities on Eastman Chemical and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Cedar Realty.
Diversification Opportunities for Eastman Chemical and Cedar Realty
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastman and Cedar is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Cedar Realty go up and down completely randomly.
Pair Corralation between Eastman Chemical and Cedar Realty
Considering the 90-day investment horizon Eastman Chemical is expected to generate 1.47 times less return on investment than Cedar Realty. But when comparing it to its historical volatility, Eastman Chemical is 1.98 times less risky than Cedar Realty. It trades about 0.07 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,131 in Cedar Realty Trust on August 31, 2024 and sell it today you would earn a total of 507.00 from holding Cedar Realty Trust or generate 44.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. Cedar Realty Trust
Performance |
| Timeline |
| Eastman Chemical |
| Cedar Realty Trust |
Eastman Chemical and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Cedar Realty
The main advantage of trading using opposite Eastman Chemical and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Eastman Chemical vs. Air Products and | Eastman Chemical vs. International Flavors Fragrances | Eastman Chemical vs. Sherwin Williams Co | Eastman Chemical vs. PPG Industries |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |