Correlation Between Eastman Chemical and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Tradeweb Markets at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eastman Chemical and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Tradeweb Markets, you can compare the effects of market volatilities on Eastman Chemical and Tradeweb Markets 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 Eastman Chemical with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Tradeweb Markets.
Diversification Opportunities for Eastman Chemical and Tradeweb Markets
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastman and Tradeweb is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Eastman Chemical 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 Eastman Chemical are associated (or correlated) with Tradeweb Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradeweb Markets has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Tradeweb Markets go up and down completely randomly.
Pair Corralation between Eastman Chemical and Tradeweb Markets
Assuming the 90 days horizon Eastman Chemical is expected to generate 1.58 times more return on investment than Tradeweb Markets. However, Eastman Chemical is 1.58 times more volatile than Tradeweb Markets. It trades about -0.02 of its potential returns per unit of risk. Tradeweb Markets is currently generating about -0.09 per unit of risk. If you would invest 5,468 in Eastman Chemical on September 11, 2025 and sell it today you would lose (234.00) from holding Eastman Chemical or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. Tradeweb Markets
Performance |
| Timeline |
| Eastman Chemical |
| Tradeweb Markets |
Eastman Chemical and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Tradeweb Markets
The main advantage of trading using opposite Eastman Chemical and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Tradeweb Markets 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 Tradeweb Markets will offset losses from the drop in Tradeweb Markets' long position.| Eastman Chemical vs. Shin Etsu Chemical Co | Eastman Chemical vs. Dow Inc | Eastman Chemical vs. Origin Agritech | Eastman Chemical vs. SIVERS SEMICONDUCTORS AB |
| Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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