Correlation Between Eastman Chemical and Zura Bio
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Zura Bio 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 Zura Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Zura Bio Limited, you can compare the effects of market volatilities on Eastman Chemical and Zura Bio 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 Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Zura Bio.
Diversification Opportunities for Eastman Chemical and Zura Bio
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastman and Zura is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited 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 Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Zura Bio go up and down completely randomly.
Pair Corralation between Eastman Chemical and Zura Bio
Considering the 90-day investment horizon Eastman Chemical is expected to generate 0.16 times more return on investment than Zura Bio. However, Eastman Chemical is 6.2 times less risky than Zura Bio. It trades about 0.0 of its potential returns per unit of risk. Zura Bio Limited is currently generating about -0.41 per unit of risk. If you would invest 10,049 in Eastman Chemical on September 13, 2024 and sell it today you would lose (18.00) from holding Eastman Chemical or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. Zura Bio Limited
Performance |
| Timeline |
| Eastman Chemical |
| Zura Bio Limited |
Eastman Chemical and Zura Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Zura Bio
The main advantage of trading using opposite Eastman Chemical and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
| Zura Bio vs. The Wendys Co | Zura Bio vs. CAVA Group, | Zura Bio vs. Dine Brands Global | Zura Bio vs. The Cheesecake Factory |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |