Correlation Between TXT E and Eastman Chemical

Can any of the company-specific risk be diversified away by investing in both TXT E and Eastman Chemical 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 TXT E and Eastman Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TXT E solutions SpA and Eastman Chemical Co, you can compare the effects of market volatilities on TXT E 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 TXT E with a short position of Eastman Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TXT E and Eastman Chemical.

Diversification Opportunities for TXT E and Eastman Chemical

0.0

Correlation Coefficient

TXT E  Eastman Chemical

Pay attention - limited upside

The 3 months correlation between TXT and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TXT E solutions SpA and Eastman Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and TXT E 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 TXT E solutions SpA 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 TXT E i.e., TXT E and Eastman Chemical go up and down completely randomly.

Pair Corralation between TXT E and Eastman Chemical

If you would invest  7,780  in Eastman Chemical Co on April 20, 2025 and sell it today you would earn a total of  20.00  from holding Eastman Chemical Co or generate 0.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TXT E solutions SpA  vs.  Eastman Chemical Co

TXT E solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days TXT E solutions SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, TXT E is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Eastman Chemical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eastman Chemical Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eastman Chemical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TXT E and Eastman Chemical

The main advantage of trading using opposite TXT E and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TXT E 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.

The idea behind TXT E solutions SpA and Eastman Chemical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.