Correlation Between Eastman Chemical and STANLN
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By analyzing existing cross correlation between Eastman Chemical and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Eastman Chemical and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and STANLN.
Diversification Opportunities for Eastman Chemical and STANLN
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and STANLN is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and STANLN go up and down completely randomly.
Pair Corralation between Eastman Chemical and STANLN
Considering the 90-day investment horizon Eastman Chemical is expected to under-perform the STANLN. In addition to that, Eastman Chemical is 36.41 times more volatile than STANLN 32 17 APR 25. It trades about -0.41 of its total potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.39 per unit of volatility. If you would invest 9,943 in STANLN 32 17 APR 25 on October 8, 2024 and sell it today you would earn a total of 6.00 from holding STANLN 32 17 APR 25 or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 21.05% |
| Values | Daily Returns |
Eastman Chemical vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| Eastman Chemical |
| STANLN 32 17 |
Eastman Chemical and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and STANLN
The main advantage of trading using opposite Eastman Chemical and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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