Correlation Between Eastman Chemical and ACGCAP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastman Chemical and ACGCAP 195 30 JAN 26, you can compare the effects of market volatilities on Eastman Chemical and ACGCAP 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 ACGCAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and ACGCAP.
Diversification Opportunities for Eastman Chemical and ACGCAP
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastman and ACGCAP is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and ACGCAP 195 30 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACGCAP 195 30 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 ACGCAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACGCAP 195 30 has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and ACGCAP go up and down completely randomly.
Pair Corralation between Eastman Chemical and ACGCAP
Considering the 90-day investment horizon Eastman Chemical is expected to generate 1.0 times more return on investment than ACGCAP. However, Eastman Chemical is 1.0 times less risky than ACGCAP. It trades about 0.04 of its potential returns per unit of risk. ACGCAP 195 30 JAN 26 is currently generating about -0.01 per unit of risk. If you would invest 8,371 in Eastman Chemical on October 22, 2024 and sell it today you would earn a total of 950.00 from holding Eastman Chemical or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.95% |
| Values | Daily Returns |
Eastman Chemical vs. ACGCAP 195 30 JAN 26
Performance |
| Timeline |
| Eastman Chemical |
| ACGCAP 195 30 |
Eastman Chemical and ACGCAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and ACGCAP
The main advantage of trading using opposite Eastman Chemical and ACGCAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, ACGCAP 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 ACGCAP will offset losses from the drop in ACGCAP'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 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |