Correlation Between KAISER and Eastman Chemical
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By analyzing existing cross correlation between KAISER FNDTN HOSPS and Eastman Chemical, you can compare the effects of market volatilities on KAISER 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 KAISER with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of KAISER and Eastman Chemical.
Diversification Opportunities for KAISER and Eastman Chemical
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KAISER and Eastman is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding KAISER FNDTN HOSPS and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and KAISER 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 KAISER FNDTN HOSPS 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 KAISER i.e., KAISER and Eastman Chemical go up and down completely randomly.
Pair Corralation between KAISER and Eastman Chemical
Assuming the 90 days trading horizon KAISER FNDTN HOSPS is expected to generate 76.57 times more return on investment than Eastman Chemical. However, KAISER is 76.57 times more volatile than Eastman Chemical. It trades about 0.1 of its potential returns per unit of risk. Eastman Chemical is currently generating about 0.07 per unit of risk. If you would invest 8,652 in KAISER FNDTN HOSPS on August 31, 2024 and sell it today you would lose (338.00) from holding KAISER FNDTN HOSPS or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
KAISER FNDTN HOSPS vs. Eastman Chemical
Performance |
| Timeline |
| KAISER FNDTN HOSPS |
| Eastman Chemical |
KAISER and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KAISER and Eastman Chemical
The main advantage of trading using opposite KAISER and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KAISER 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.| KAISER vs. Eastman Chemical | KAISER vs. Luxfer Holdings PLC | KAISER vs. Air Products and | KAISER vs. Ecovyst |
| Eastman Chemical vs. Air Products and | Eastman Chemical vs. International Flavors Fragrances | Eastman Chemical vs. Sherwin Williams Co | Eastman Chemical vs. PPG Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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