Correlation Between Nucletron Electronic and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both Nucletron Electronic 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 Nucletron Electronic and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nucletron Electronic Aktiengesellschaft and Eastman Chemical, you can compare the effects of market volatilities on Nucletron Electronic 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 Nucletron Electronic with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nucletron Electronic and Eastman Chemical.
Diversification Opportunities for Nucletron Electronic and Eastman Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nucletron and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nucletron Electronic Aktienges and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Nucletron Electronic 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 Nucletron Electronic 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 Nucletron Electronic i.e., Nucletron Electronic and Eastman Chemical go up and down completely randomly.
Pair Corralation between Nucletron Electronic and Eastman Chemical
If you would invest 9,230 in Eastman Chemical on September 4, 2024 and sell it today you would earn a total of 642.00 from holding Eastman Chemical or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nucletron Electronic Aktienges vs. Eastman Chemical
Performance |
| Timeline |
| Nucletron Electronic |
| Eastman Chemical |
Nucletron Electronic and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nucletron Electronic and Eastman Chemical
The main advantage of trading using opposite Nucletron Electronic and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nucletron Electronic 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.| Nucletron Electronic vs. Playtech plc | Nucletron Electronic vs. PLAYTIKA HOLDING DL 01 | Nucletron Electronic vs. Uber Technologies | Nucletron Electronic vs. ACCSYS TECHPLC EO |
| Eastman Chemical vs. AIR LIQUIDE ADR | Eastman Chemical vs. BASF SE | Eastman Chemical vs. BASF SE | Eastman Chemical vs. BASF SE |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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