Correlation Between Eastman Chemical and Toshiba
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Toshiba 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 Toshiba into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Toshiba, you can compare the effects of market volatilities on Eastman Chemical and Toshiba 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 Toshiba. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Toshiba.
Diversification Opportunities for Eastman Chemical and Toshiba
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastman and Toshiba is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Toshiba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba 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 Toshiba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Toshiba go up and down completely randomly.
Pair Corralation between Eastman Chemical and Toshiba
If you would invest 10,108 in Eastman Chemical on September 2, 2024 and sell it today you would earn a total of 364.00 from holding Eastman Chemical or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eastman Chemical vs. Toshiba
Performance |
| Timeline |
| Eastman Chemical |
| Toshiba |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Chemical and Toshiba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Toshiba
The main advantage of trading using opposite Eastman Chemical and Toshiba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Toshiba 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 Toshiba will offset losses from the drop in Toshiba'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 |
| Toshiba vs. Qualys Inc | Toshiba vs. Asure Software | Toshiba vs. Harmony Gold Mining | Toshiba vs. Evertz Technologies Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |