Correlation Between Eastman Chemical and TOR Minerals
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and TOR Minerals 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 TOR Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and TOR Minerals International, you can compare the effects of market volatilities on Eastman Chemical and TOR Minerals 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 TOR Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and TOR Minerals.
Diversification Opportunities for Eastman Chemical and TOR Minerals
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastman and TOR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and TOR Minerals International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOR Minerals Interna 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 TOR Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOR Minerals Interna has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and TOR Minerals go up and down completely randomly.
Pair Corralation between Eastman Chemical and TOR Minerals
If you would invest 8,762 in Eastman Chemical on August 25, 2024 and sell it today you would earn a total of 1,797 from holding Eastman Chemical or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
Eastman Chemical vs. TOR Minerals International
Performance |
| Timeline |
| Eastman Chemical |
| TOR Minerals Interna |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Chemical and TOR Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and TOR Minerals
The main advantage of trading using opposite Eastman Chemical and TOR Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, TOR Minerals 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 TOR Minerals will offset losses from the drop in TOR Minerals' long position.| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
| TOR Minerals vs. Core Molding Technologies | TOR Minerals vs. Neo Performance Materials | TOR Minerals vs. Avient Corp | TOR Minerals vs. Oil Dri |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |