Correlation Between AMCON Distributing and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Eastman Kodak Co, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Eastman Kodak.
Diversification Opportunities for AMCON Distributing and Eastman Kodak
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMCON and Eastman is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and Eastman Kodak go up and down completely randomly.
Pair Corralation between AMCON Distributing and Eastman Kodak
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.92 times less return on investment than Eastman Kodak. But when comparing it to its historical volatility, AMCON Distributing is 1.66 times less risky than Eastman Kodak. It trades about 0.14 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Eastman Kodak Co on September 13, 2024 and sell it today you would earn a total of 128.00 from holding Eastman Kodak Co or generate 23.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Eastman Kodak Co
Performance |
| Timeline |
| AMCON Distributing |
| Eastman Kodak |
AMCON Distributing and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Eastman Kodak
The main advantage of trading using opposite AMCON Distributing and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |