Correlation Between ETFS 1x and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both ETFS 1x 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 ETFS 1x and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS 1x Daily and Eastman Chemical Co, you can compare the effects of market volatilities on ETFS 1x 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 ETFS 1x with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS 1x and Eastman Chemical.
Diversification Opportunities for ETFS 1x and Eastman Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETFS and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETFS 1x Daily and Eastman Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and ETFS 1x 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 ETFS 1x Daily 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 ETFS 1x i.e., ETFS 1x and Eastman Chemical go up and down completely randomly.
Pair Corralation between ETFS 1x and Eastman Chemical
If you would invest 10,660 in Eastman Chemical Co on August 28, 2024 and sell it today you would lose (18.00) from holding Eastman Chemical Co or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ETFS 1x Daily vs. Eastman Chemical Co
Performance |
| Timeline |
| ETFS 1x Daily |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastman Chemical |
ETFS 1x and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS 1x and Eastman Chemical
The main advantage of trading using opposite ETFS 1x and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS 1x 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.| ETFS 1x vs. Taylor Maritime Investments | ETFS 1x vs. Lords Grp Trading | ETFS 1x vs. Hansa Investment | ETFS 1x vs. FC Investment Trust |
| Eastman Chemical vs. UNIQA Insurance Group | Eastman Chemical vs. Westlake Chemical Corp | Eastman Chemical vs. Greenroc Mining PLC | Eastman Chemical vs. McEwen Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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