Correlation Between Eastman Chemical and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Grupo Televisa 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 Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Grupo Televisa SAB, you can compare the effects of market volatilities on Eastman Chemical and Grupo Televisa 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 Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Grupo Televisa.
Diversification Opportunities for Eastman Chemical and Grupo Televisa
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and Grupo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Grupo Televisa go up and down completely randomly.
Pair Corralation between Eastman Chemical and Grupo Televisa
Considering the 90-day investment horizon Eastman Chemical is expected to generate 0.38 times more return on investment than Grupo Televisa. However, Eastman Chemical is 2.63 times less risky than Grupo Televisa. It trades about 0.04 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.02 per unit of risk. If you would invest 8,101 in Eastman Chemical on September 4, 2024 and sell it today you would earn a total of 2,326 from holding Eastman Chemical or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. Grupo Televisa SAB
Performance |
| Timeline |
| Eastman Chemical |
| Grupo Televisa SAB |
Eastman Chemical and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Grupo Televisa
The main advantage of trading using opposite Eastman Chemical and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa's long position.| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
| Grupo Televisa vs. Kura Sushi USA | Grupo Televisa vs. CAVA Group, | Grupo Televisa vs. Cracker Barrel Old | Grupo Televisa vs. RCI Hospitality Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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