Correlation Between Eastman Chemical and Alphamin Resources
Can any of the company-specific risk be diversified away by investing in both Eastman Chemical and Alphamin Resources 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 Alphamin Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Chemical and Alphamin Resources Corp, you can compare the effects of market volatilities on Eastman Chemical and Alphamin Resources 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 Alphamin Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Chemical and Alphamin Resources.
Diversification Opportunities for Eastman Chemical and Alphamin Resources
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and Alphamin is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Chemical and Alphamin Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphamin Resources Corp 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 Alphamin Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphamin Resources Corp has no effect on the direction of Eastman Chemical i.e., Eastman Chemical and Alphamin Resources go up and down completely randomly.
Pair Corralation between Eastman Chemical and Alphamin Resources
Considering the 90-day investment horizon Eastman Chemical is expected to under-perform the Alphamin Resources. But the stock apears to be less risky and, when comparing its historical volatility, Eastman Chemical is 1.24 times less risky than Alphamin Resources. The stock trades about -0.05 of its potential returns per unit of risk. The Alphamin Resources Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 69.00 in Alphamin Resources Corp on September 9, 2025 and sell it today you would earn a total of 14.00 from holding Alphamin Resources Corp or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Chemical vs. Alphamin Resources Corp
Performance |
| Timeline |
| Eastman Chemical |
| Alphamin Resources Corp |
Eastman Chemical and Alphamin Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Chemical and Alphamin Resources
The main advantage of trading using opposite Eastman Chemical and Alphamin Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Chemical position performs unexpectedly, Alphamin Resources 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 Alphamin Resources will offset losses from the drop in Alphamin Resources' long position.| Eastman Chemical vs. Element Solutions | Eastman Chemical vs. Axalta Coating Systems | Eastman Chemical vs. NewMarket | Eastman Chemical vs. IAMGold |
| Alphamin Resources vs. Straits Trading | Alphamin Resources vs. Indocement Tunggal Prakarsa | Alphamin Resources vs. Vulcan Energy Resources | Alphamin Resources vs. West African Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |