Correlation Between Eastman Kodak and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Ainsworth Game 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 Eastman Kodak and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastman Kodak Co and Ainsworth Game Technology, you can compare the effects of market volatilities on Eastman Kodak and Ainsworth Game 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 Eastman Kodak with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Ainsworth Game.
Diversification Opportunities for Eastman Kodak and Ainsworth Game
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and Ainsworth is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Eastman Kodak 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 Eastman Kodak Co are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Ainsworth Game go up and down completely randomly.
Pair Corralation between Eastman Kodak and Ainsworth Game
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 2.34 times more return on investment than Ainsworth Game. However, Eastman Kodak is 2.34 times more volatile than Ainsworth Game Technology. It trades about 0.14 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.16 per unit of risk. If you would invest 504.00 in Eastman Kodak Co on August 31, 2024 and sell it today you would earn a total of 210.00 from holding Eastman Kodak Co or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Ainsworth Game Technology
Performance |
| Timeline |
| Eastman Kodak |
| Ainsworth Game Technology |
Eastman Kodak and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Ainsworth Game
The main advantage of trading using opposite Eastman Kodak and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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