Correlation Between Compania Cervecerias and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Compania Cervecerias 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 Compania Cervecerias and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania Cervecerias Unidas and Eastman Kodak Co, you can compare the effects of market volatilities on Compania Cervecerias 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 Compania Cervecerias with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and Eastman Kodak.
Diversification Opportunities for Compania Cervecerias and Eastman Kodak
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compania and Eastman is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Compania Cervecerias 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 Compania Cervecerias Unidas 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 Compania Cervecerias i.e., Compania Cervecerias and Eastman Kodak go up and down completely randomly.
Pair Corralation between Compania Cervecerias and Eastman Kodak
Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to generate 0.35 times more return on investment than Eastman Kodak. However, Compania Cervecerias Unidas is 2.86 times less risky than Eastman Kodak. It trades about 0.35 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.05 per unit of risk. If you would invest 1,187 in Compania Cervecerias Unidas on November 28, 2024 and sell it today you would earn a total of 111.00 from holding Compania Cervecerias Unidas or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compania Cervecerias Unidas vs. Eastman Kodak Co
Performance |
| Timeline |
| Compania Cervecerias |
| Eastman Kodak |
Compania Cervecerias and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Cervecerias and Eastman Kodak
The main advantage of trading using opposite Compania Cervecerias and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias 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.| Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Molson Coors Beverage | Compania Cervecerias vs. Ambev SA ADR | Compania Cervecerias vs. Molson Coors Brewing |
| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |