Correlation Between Eastman Chemical and 639057AF5
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastman Chemical and NWG 5516 30 SEP 28, you can compare the effects of market volatilities on Eastman Chemical and 639057AF5 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 639057AF5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and 639057AF5.
Diversification Opportunities for Eastman Chemical and 639057AF5
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastman and 639057AF5 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and NWG 5516 30 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWG 5516 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 639057AF5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWG 5516 30 has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and 639057AF5 go up and down completely randomly.
Pair Corralation between Eastman Chemical and 639057AF5
Considering the 90-day investment horizon Eastman Chemical is expected to generate 3.64 times more return on investment than 639057AF5. However, Eastman Chemical is 3.64 times more volatile than NWG 5516 30 SEP 28. It trades about 0.07 of its potential returns per unit of risk. NWG 5516 30 SEP 28 is currently generating about -0.03 per unit of risk. If you would invest 8,267 in Eastman Chemical on September 4, 2024 and sell it today you would earn a total of 2,027 from holding Eastman Chemical or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.71% |
| Values | Daily Returns |
Eastman Chemical vs. NWG 5516 30 SEP 28
Performance |
| Timeline |
| Eastman Chemical |
| NWG 5516 30 |
Eastman Chemical and 639057AF5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and 639057AF5
The main advantage of trading using opposite Eastman Chemical and 639057AF5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, 639057AF5 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 639057AF5 will offset losses from the drop in 639057AF5's long position.| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
| 639057AF5 vs. AEP TEX INC | 639057AF5 vs. US BANK NATIONAL | 639057AF5 vs. MetLife | 639057AF5 vs. Brera Holdings PLC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |