Correlation Between Eastman Chemical and KAISER
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By analyzing existing cross correlation between Eastman Chemical and KAISER FNDTN HOSPS, you can compare the effects of market volatilities on Eastman Chemical and KAISER 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 KAISER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and KAISER.
Diversification Opportunities for Eastman Chemical and KAISER
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastman and KAISER is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and KAISER FNDTN HOSPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAISER FNDTN HOSPS 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 KAISER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAISER FNDTN HOSPS has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and KAISER go up and down completely randomly.
Pair Corralation between Eastman Chemical and KAISER
Considering the 90-day investment horizon Eastman Chemical is expected to generate 133.39 times less return on investment than KAISER. But when comparing it to its historical volatility, Eastman Chemical is 60.12 times less risky than KAISER. It trades about 0.04 of its potential returns per unit of risk. KAISER FNDTN HOSPS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,181 in KAISER FNDTN HOSPS on September 3, 2024 and sell it today you would lose (867.00) from holding KAISER FNDTN HOSPS or give up 9.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.07% |
| Values | Daily Returns |
Eastman Chemical vs. KAISER FNDTN HOSPS
Performance |
| Timeline |
| Eastman Chemical |
| KAISER FNDTN HOSPS |
Eastman Chemical and KAISER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and KAISER
The main advantage of trading using opposite Eastman Chemical and KAISER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, KAISER 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 KAISER will offset losses from the drop in KAISER's long position.| Eastman Chemical vs. SPACE | Eastman Chemical vs. Bayview Acquisition Corp | Eastman Chemical vs. T Rowe Price | Eastman Chemical vs. Ampleforth |
| KAISER vs. Bausch Lomb Corp | KAISER vs. Anterix | KAISER vs. Sphere Entertainment Co | KAISER vs. Franklin Wireless Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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