Correlation Between Eastman Chemical and Paiute Oil
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Paiute Oil 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 Paiute Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Paiute Oil Mining, you can compare the effects of market volatilities on Eastman Chemical and Paiute Oil 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 Paiute Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Paiute Oil.
Diversification Opportunities for Eastman Chemical and Paiute Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and Paiute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Paiute Oil Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paiute Oil Mining 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 Paiute Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paiute Oil Mining has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Paiute Oil go up and down completely randomly.
Pair Corralation between Eastman Chemical and Paiute Oil
If you would invest 0.01 in Paiute Oil Mining on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Paiute Oil Mining 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. Paiute Oil Mining
Performance |
| Timeline |
| Eastman Chemical |
| Paiute Oil Mining |
Eastman Chemical and Paiute Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Paiute Oil
The main advantage of trading using opposite Eastman Chemical and Paiute Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Paiute Oil 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 Paiute Oil will offset losses from the drop in Paiute Oil's long position.| Eastman Chemical vs. Griffon | Eastman Chemical vs. Merck Company | Eastman Chemical vs. Brinker International | Eastman Chemical vs. Alcoa Corp |
| Paiute Oil vs. Copa Holdings SA | Paiute Oil vs. United Airlines Holdings | Paiute Oil vs. Delta Air Lines | Paiute Oil vs. SkyWest |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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