Correlation Between DELHAIZE and Eastman Chemical
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By analyzing existing cross correlation between DELHAIZE GROUP SA and Eastman Chemical, you can compare the effects of market volatilities on DELHAIZE 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 DELHAIZE with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DELHAIZE and Eastman Chemical.
Diversification Opportunities for DELHAIZE and Eastman Chemical
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DELHAIZE and Eastman is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DELHAIZE GROUP SA and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and DELHAIZE 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 DELHAIZE GROUP SA 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 DELHAIZE i.e., DELHAIZE and Eastman Chemical go up and down completely randomly.
Pair Corralation between DELHAIZE and Eastman Chemical
Assuming the 90 days trading horizon DELHAIZE GROUP SA is expected to generate 52.12 times more return on investment than Eastman Chemical. However, DELHAIZE is 52.12 times more volatile than Eastman Chemical. It trades about 0.07 of its potential returns per unit of risk. Eastman Chemical is currently generating about 0.04 per unit of risk. If you would invest 10,470 in DELHAIZE GROUP SA on August 24, 2024 and sell it today you would lose (414.00) from holding DELHAIZE GROUP SA or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.03% |
| Values | Daily Returns |
DELHAIZE GROUP SA vs. Eastman Chemical
Performance |
| Timeline |
| DELHAIZE GROUP SA |
| Eastman Chemical |
DELHAIZE and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DELHAIZE and Eastman Chemical
The main advantage of trading using opposite DELHAIZE and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DELHAIZE 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.| DELHAIZE vs. Eastman Chemical | DELHAIZE vs. NL Industries | DELHAIZE vs. Flexible Solutions International | DELHAIZE vs. Maiden Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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