Correlation Between Maquia Capital and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both Maquia Capital and Eastman Chemical 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 Maquia Capital and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maquia Capital Acquisition and Eastman Chemical, you can compare the effects of market volatilities on Maquia Capital 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 Maquia Capital with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maquia Capital and Eastman Chemical.
Diversification Opportunities for Maquia Capital and Eastman Chemical
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maquia and Eastman is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Maquia Capital Acquisition and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Maquia Capital 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 Maquia Capital Acquisition 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 Maquia Capital i.e., Maquia Capital and Eastman Chemical go up and down completely randomly.
Pair Corralation between Maquia Capital and Eastman Chemical
Assuming the 90 days horizon Maquia Capital is expected to generate 2.52 times less return on investment than Eastman Chemical. But when comparing it to its historical volatility, Maquia Capital Acquisition is 3.52 times less risky than Eastman Chemical. It trades about 0.07 of its potential returns per unit of risk. Eastman Chemical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,686 in Eastman Chemical on September 3, 2024 and sell it today you would earn a total of 741.00 from holding Eastman Chemical or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.0% |
| Values | Daily Returns |
Maquia Capital Acquisition vs. Eastman Chemical
Performance |
| Timeline |
| Maquia Capital Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastman Chemical |
Maquia Capital and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maquia Capital and Eastman Chemical
The main advantage of trading using opposite Maquia Capital and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maquia Capital 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.| Maquia Capital vs. Avient Corp | Maquia Capital vs. Radcom | Maquia Capital vs. Highway Holdings Limited | Maquia Capital vs. Ziff Davis |
| Eastman Chemical vs. SPACE | Eastman Chemical vs. Bayview Acquisition Corp | Eastman Chemical vs. T Rowe Price | Eastman Chemical vs. Ampleforth |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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