Correlation Between INTERSHOP Communications and Eastman Chemical
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Eastman Chemical, you can compare the effects of market volatilities on INTERSHOP Communications and Eastman Chemical 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 INTERSHOP Communications with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Eastman Chemical.
Diversification Opportunities for INTERSHOP Communications and Eastman Chemical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTERSHOP and Eastman is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and INTERSHOP Communications 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 INTERSHOP Communications Aktiengesellschaft are associated (or correlated) with Eastman Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Chemical has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Eastman Chemical go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Eastman Chemical
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 1.83 times less return on investment than Eastman Chemical. In addition to that, INTERSHOP Communications is 1.14 times more volatile than Eastman Chemical. It trades about 0.03 of its total potential returns per unit of risk. Eastman Chemical is currently generating about 0.07 per unit of volatility. If you would invest 8,768 in Eastman Chemical on October 22, 2024 and sell it today you would earn a total of 106.00 from holding Eastman Chemical or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Eastman Chemical
Performance |
| Timeline |
| INTERSHOP Communications |
| Eastman Chemical |
INTERSHOP Communications and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Eastman Chemical
The main advantage of trading using opposite INTERSHOP Communications and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Eastman Chemical 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 Eastman Chemical will offset losses from the drop in Eastman Chemical's long position.| INTERSHOP Communications vs. Japan Tobacco | INTERSHOP Communications vs. UPDATE SOFTWARE | INTERSHOP Communications vs. INTERNET INJPADR 1 | INTERSHOP Communications vs. VITEC SOFTWARE GROUP |
| Eastman Chemical vs. PLAYMATES TOYS | Eastman Chemical vs. PPHE HOTEL GROUP | Eastman Chemical vs. Summit Hotel Properties | Eastman Chemical vs. MIRAMAR HOTEL INV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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