Correlation Between Eastman Chemical and TRAVELERS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastman Chemical and TRAVELERS PANIES INC, you can compare the effects of market volatilities on Eastman Chemical and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and TRAVELERS.
Diversification Opportunities for Eastman Chemical and TRAVELERS
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastman and TRAVELERS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and TRAVELERS PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS PANIES INC 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS PANIES INC has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and TRAVELERS go up and down completely randomly.
Pair Corralation between Eastman Chemical and TRAVELERS
Considering the 90-day investment horizon Eastman Chemical is expected to generate 204.84 times less return on investment than TRAVELERS. But when comparing it to its historical volatility, Eastman Chemical is 73.86 times less risky than TRAVELERS. It trades about 0.04 of its potential returns per unit of risk. TRAVELERS PANIES INC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,949 in TRAVELERS PANIES INC on September 14, 2024 and sell it today you would lose (94.00) from holding TRAVELERS PANIES INC or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.13% |
| Values | Daily Returns |
Eastman Chemical vs. TRAVELERS PANIES INC
Performance |
| Timeline |
| Eastman Chemical |
| TRAVELERS PANIES INC |
Eastman Chemical and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and TRAVELERS
The main advantage of trading using opposite Eastman Chemical and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
| TRAVELERS vs. Eastman Chemical | TRAVELERS vs. Ecovyst | TRAVELERS vs. Sensient Technologies | TRAVELERS vs. NL 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |