Correlation Between CMCSA and Eastman Chemical
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By analyzing existing cross correlation between CMCSA 65 15 OCT 35 and Eastman Chemical, you can compare the effects of market volatilities on CMCSA 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 CMCSA with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMCSA and Eastman Chemical.
Diversification Opportunities for CMCSA and Eastman Chemical
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CMCSA and Eastman is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CMCSA 65 15 OCT 35 and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and CMCSA 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 CMCSA 65 15 OCT 35 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 CMCSA i.e., CMCSA and Eastman Chemical go up and down completely randomly.
Pair Corralation between CMCSA and Eastman Chemical
Assuming the 90 days trading horizon CMCSA 65 15 OCT 35 is expected to under-perform the Eastman Chemical. But the bond apears to be less risky and, when comparing its historical volatility, CMCSA 65 15 OCT 35 is 1.33 times less risky than Eastman Chemical. The bond trades about -0.01 of its potential returns per unit of risk. The Eastman Chemical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,637 in Eastman Chemical on September 12, 2024 and sell it today you would earn a total of 2,280 from holding Eastman Chemical or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.56% |
| Values | Daily Returns |
CMCSA 65 15 OCT 35 vs. Eastman Chemical
Performance |
| Timeline |
| CMCSA 65 15 |
| Eastman Chemical |
CMCSA and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMCSA and Eastman Chemical
The main advantage of trading using opposite CMCSA and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMCSA 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.| CMCSA vs. Western Copper and | CMCSA vs. Pinterest | CMCSA vs. Definitive Healthcare Corp | CMCSA vs. Kaltura |
| Eastman Chemical vs. Griffon | Eastman Chemical vs. Merck Company | Eastman Chemical vs. Brinker International | Eastman Chemical vs. Alcoa Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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