Correlation Between Artificial Intelligence and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Artificial Intelligence and Eastman Kodak 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 Artificial Intelligence and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artificial Intelligence Technology and Eastman Kodak Co, you can compare the effects of market volatilities on Artificial Intelligence and Eastman Kodak 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 Artificial Intelligence with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artificial Intelligence and Eastman Kodak.
Diversification Opportunities for Artificial Intelligence and Eastman Kodak
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Artificial and Eastman is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Artificial Intelligence Techno and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Artificial Intelligence 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 Artificial Intelligence Technology are associated (or correlated) with Eastman Kodak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Kodak has no effect on the direction of Artificial Intelligence i.e., Artificial Intelligence and Eastman Kodak go up and down completely randomly.
Pair Corralation between Artificial Intelligence and Eastman Kodak
Given the investment horizon of 90 days Artificial Intelligence is expected to generate 1.67 times less return on investment than Eastman Kodak. In addition to that, Artificial Intelligence is 2.1 times more volatile than Eastman Kodak Co. It trades about 0.03 of its total potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.1 per unit of volatility. If you would invest 504.00 in Eastman Kodak Co on November 2, 2024 and sell it today you would earn a total of 200.00 from holding Eastman Kodak Co or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Artificial Intelligence Techno vs. Eastman Kodak Co
Performance |
| Timeline |
| Artificial Intelligence |
| Eastman Kodak |
Artificial Intelligence and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artificial Intelligence and Eastman Kodak
The main advantage of trading using opposite Artificial Intelligence and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artificial Intelligence position performs unexpectedly, Eastman Kodak 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 Kodak will offset losses from the drop in Eastman Kodak's long position.| Artificial Intelligence vs. Rigetti Computing | Artificial Intelligence vs. Quantum Computing | Artificial Intelligence vs. IONQ Inc | Artificial Intelligence vs. Desktop Metal |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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