Correlation Between SEAGATE and Eastman Chemical
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By analyzing existing cross correlation between SEAGATE HDD CAYMAN and Eastman Chemical, you can compare the effects of market volatilities on SEAGATE 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 SEAGATE with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEAGATE and Eastman Chemical.
Diversification Opportunities for SEAGATE and Eastman Chemical
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SEAGATE and Eastman is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SEAGATE HDD CAYMAN and Eastman Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and SEAGATE 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 SEAGATE HDD CAYMAN 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 SEAGATE i.e., SEAGATE and Eastman Chemical go up and down completely randomly.
Pair Corralation between SEAGATE and Eastman Chemical
Assuming the 90 days trading horizon SEAGATE HDD CAYMAN is expected to under-perform the Eastman Chemical. But the bond apears to be less risky and, when comparing its historical volatility, SEAGATE HDD CAYMAN is 1.61 times less risky than Eastman Chemical. The bond trades about 0.0 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 7,711 in Eastman Chemical on September 13, 2024 and sell it today you would earn a total of 2,222 from holding Eastman Chemical or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SEAGATE HDD CAYMAN vs. Eastman Chemical
Performance |
| Timeline |
| SEAGATE HDD CAYMAN |
| Eastman Chemical |
SEAGATE and Eastman Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEAGATE and Eastman Chemical
The main advantage of trading using opposite SEAGATE and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEAGATE 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.| SEAGATE vs. U Power Limited | SEAGATE vs. Ironveld Plc | SEAGATE vs. Barrick Gold Corp | SEAGATE vs. Dana Inc |
| Eastman Chemical vs. Olin Corporation | Eastman Chemical vs. Cabot | Eastman Chemical vs. Kronos Worldwide | Eastman Chemical vs. LyondellBasell Industries NV |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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