Correlation Between Phunware and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both Phunware 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 Phunware and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phunware and Eastman Chemical, you can compare the effects of market volatilities on Phunware 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 Phunware with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and Eastman Chemical.
Diversification Opportunities for Phunware and Eastman Chemical
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Phunware and Eastman is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Phunware 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 Phunware 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 Phunware i.e., Phunware and Eastman Chemical go up and down completely randomly.
Pair Corralation between Phunware and Eastman Chemical
If you would invest 8,267 in Eastman Chemical on September 4, 2024 and sell it today you would earn a total of 2,160 from holding Eastman Chemical or generate 26.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Phunware vs. Eastman Chemical
Performance |
| Timeline |
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastman Chemical |
Phunware and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phunware and Eastman Chemical
The main advantage of trading using opposite Phunware and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phunware 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.| Phunware vs. Nike Inc | Phunware vs. Duluth Holdings | Phunware vs. Citi Trends | Phunware vs. Victorias Secret Co |
| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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