Correlation Between Odyssean Investment and Eastman Chemical

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

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

Diversification Opportunities for Odyssean Investment and Eastman Chemical

0.1

Correlation Coefficient

Odyssean Investment  Eastman Chemical

Average diversification

The 3 months correlation between Odyssean and Eastman is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and Eastman Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Chemical and Odyssean Investment 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 Odyssean Investment Trust 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 Odyssean Investment i.e., Odyssean Investment and Eastman Chemical go up and down completely randomly.

Pair Corralation between Odyssean Investment and Eastman Chemical

Assuming the 90 days trading horizon Odyssean Investment Trust is expected to generate 0.77 times more return on investment than Eastman Chemical. However, Odyssean Investment Trust is 1.3 times less risky than Eastman Chemical. It trades about 0.24 of its potential returns per unit of risk. Eastman Chemical Co is currently generating about 0.0 per unit of risk. If you would invest  12,750  in Odyssean Investment Trust on April 23, 2025 and sell it today you would earn a total of  3,500  from holding Odyssean Investment Trust or generate 27.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

Odyssean Investment Trust  vs.  Eastman Chemical Co

Odyssean Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssean Investment Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Odyssean Investment exhibited solid returns over the last few months and may actually be approaching a breakup point.

Eastman Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eastman Chemical Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Eastman Chemical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Odyssean Investment and Eastman Chemical

The main advantage of trading using opposite Odyssean Investment and Eastman Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssean Investment 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 Odyssean Investment Trust 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.