Correlation Between Eastman Chemical and World Access
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and World Access at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eastman Chemical and World Access into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and World Access, you can compare the effects of market volatilities on Eastman Chemical and World Access 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 World Access. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and World Access.
Diversification Opportunities for Eastman Chemical and World Access
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and World is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and World Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Access 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 World Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Access has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and World Access go up and down completely randomly.
Pair Corralation between Eastman Chemical and World Access
If you would invest 9,121 in Eastman Chemical on October 22, 2024 and sell it today you would earn a total of 200.00 from holding Eastman Chemical or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Eastman Chemical vs. World Access
Performance |
| Timeline |
| Eastman Chemical |
| World Access |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Chemical and World Access Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and World Access
The main advantage of trading using opposite Eastman Chemical and World Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, World Access 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 World Access will offset losses from the drop in World Access' 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 |
| World Access vs. Sun Country Airlines | World Access vs. Academy Sports Outdoors | World Access vs. MYT Netherlands Parent | World Access vs. Playa Hotels Resorts |
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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