Eastman Chemical Stock Volatility
| EMN Stock | USD 103.60 2.23 2.20% |
As of now, Eastman Stock is very steady. Eastman Chemical secures Sharpe Ratio (or Efficiency) of 0.0456, which denotes the company had a 0.0456% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Eastman Chemical, which you can use to evaluate the volatility of the firm. Please confirm Eastman Chemical's Downside Deviation of 1.35, coefficient of variation of 1697.12, and Mean Deviation of 1.08 to check if the risk estimate we provide is consistent with the expected return of 0.0651%. Key indicators related to Eastman Chemical's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Eastman Chemical Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Eastman daily returns, and it is calculated using variance and standard deviation. We also use Eastman's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eastman Chemical volatility.
Eastman |
ESG Sustainability
While most ESG disclosures are voluntary, Eastman Chemical's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Eastman Chemical's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eastman Chemical can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Eastman Chemical at lower prices. For example, an investor can purchase Eastman stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Eastman Chemical's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Eastman Stock
| 0.87 | DD | Dupont De Nemours Fiscal Year End 4th of February 2025 | PairCorr |
Moving against Eastman Stock
Eastman Chemical Market Sensitivity And Downside Risk
Eastman Chemical's beta coefficient measures the volatility of Eastman stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Eastman stock's returns against your selected market. In other words, Eastman Chemical's beta of 0.9 provides an investor with an approximation of how much risk Eastman Chemical stock can potentially add to one of your existing portfolios. Eastman Chemical has relatively low volatility with skewness of 0.13 and kurtosis of 0.36. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eastman Chemical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eastman Chemical's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Eastman Chemical Demand TrendCheck current 90 days Eastman Chemical correlation with market (Dow Jones Industrial)Eastman Beta |
Eastman standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.43 |
It is essential to understand the difference between upside risk (as represented by Eastman Chemical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eastman Chemical's daily returns or price. Since the actual investment returns on holding a position in eastman stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Eastman Chemical.
Eastman Chemical Stock Volatility Analysis
Volatility refers to the frequency at which Eastman Chemical stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eastman Chemical's price changes. Investors will then calculate the volatility of Eastman Chemical's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Eastman Chemical's volatility:
Historical Volatility
This type of stock volatility measures Eastman Chemical's fluctuations based on previous trends. It's commonly used to predict Eastman Chemical's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Eastman Chemical's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Eastman Chemical's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Eastman Chemical Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Eastman Chemical Projected Return Density Against Market
Considering the 90-day investment horizon Eastman Chemical has a beta of 0.9048 suggesting Eastman Chemical market returns are highly reactive to returns on the market. As the market goes up or down, Eastman Chemical is expected to follow.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Eastman Chemical or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Eastman Chemical's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Eastman stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Eastman Chemical has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an Eastman Chemical Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Eastman Chemical Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Eastman Chemical is 2190.7. The daily returns are distributed with a variance of 2.03 and standard deviation of 1.43. The mean deviation of Eastman Chemical is currently at 1.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | -0.0037 | |
β | Beta against Dow Jones | 0.90 | |
σ | Overall volatility | 1.43 | |
Ir | Information ratio | -0.0084 |
Eastman Chemical Stock Return Volatility
Eastman Chemical historical daily return volatility represents how much of Eastman Chemical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.4265% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Eastman Chemical Volatility
Volatility is a rate at which the price of Eastman Chemical or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Eastman Chemical may increase or decrease. In other words, similar to Eastman's beta indicator, it measures the risk of Eastman Chemical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eastman Chemical fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 41 M | 39 M | |
| Market Cap | 3.9 B | 3 B |
Eastman Chemical's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Eastman Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Eastman Chemical's price varies over time.
3 ways to utilize Eastman Chemical's volatility to invest better
Higher Eastman Chemical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Eastman Chemical stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Eastman Chemical stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Eastman Chemical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Eastman Chemical's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Eastman Chemical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Eastman Chemical Investment Opportunity
Eastman Chemical has a volatility of 1.43 and is 1.88 times more volatile than Dow Jones Industrial. 12 percent of all equities and portfolios are less risky than Eastman Chemical. You can use Eastman Chemical to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Eastman Chemical to be traded at $124.32 in 90 days.Very weak diversification
The correlation between Eastman Chemical and DJI is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and DJI in the same portfolio, assuming nothing else is changed.
Eastman Chemical Additional Risk Indicators
The analysis of Eastman Chemical's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Eastman Chemical's investment and either accepting that risk or mitigating it. Along with some common measures of Eastman Chemical stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0491 | |||
| Market Risk Adjusted Performance | 0.0913 | |||
| Mean Deviation | 1.08 | |||
| Semi Deviation | 1.28 | |||
| Downside Deviation | 1.35 | |||
| Coefficient Of Variation | 1697.12 | |||
| Standard Deviation | 1.42 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Eastman Chemical Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Eastman Chemical as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Eastman Chemical's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Eastman Chemical's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Eastman Chemical.
When determining whether Eastman Chemical offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Eastman Chemical's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Eastman Chemical Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Eastman Chemical Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Eastman Chemical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. To learn how to invest in Eastman Stock, please use our How to Invest in Eastman Chemical guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Diversified Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Eastman Chemical. If investors know Eastman will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Eastman Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.027 | Dividend Share 3.24 | Earnings Share 7.46 | Revenue Per Share 79.642 | Quarterly Revenue Growth 0.087 |
The market value of Eastman Chemical is measured differently than its book value, which is the value of Eastman that is recorded on the company's balance sheet. Investors also form their own opinion of Eastman Chemical's value that differs from its market value or its book value, called intrinsic value, which is Eastman Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Eastman Chemical's market value can be influenced by many factors that don't directly affect Eastman Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Eastman Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eastman Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eastman Chemical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.