Correlation Between Soken Chemical and Eastman Chemical
Can any of the company-specific risk be diversified away by investing in both Soken Chemical 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 Soken Chemical and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and Eastman Chemical, you can compare the effects of market volatilities on Soken Chemical 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 Soken Chemical with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and Eastman Chemical.
Diversification Opportunities for Soken Chemical and Eastman Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Soken Chemical 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 Soken Chemical Engineering 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 Soken Chemical i.e., Soken Chemical and Eastman Chemical go up and down completely randomly.
Pair Corralation between Soken Chemical and Eastman Chemical
If you would invest 7,436 in Eastman Chemical on August 30, 2024 and sell it today you would earn a total of 2,634 from holding Eastman Chemical or generate 35.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. Eastman Chemical
Performance |
| Timeline |
| Soken Chemical Engin |
| Eastman Chemical |
Soken Chemical and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and Eastman Chemical
The main advantage of trading using opposite Soken Chemical and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical 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.| Soken Chemical vs. Linde plc | Soken Chemical vs. Superior Plus Corp | Soken Chemical vs. NMI Holdings | Soken Chemical vs. SIVERS SEMICONDUCTORS AB |
| Eastman Chemical vs. COPLAND ROAD CAPITAL | Eastman Chemical vs. Transport International Holdings | Eastman Chemical vs. Liberty Broadband | Eastman Chemical vs. GRIFFIN MINING LTD |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |