Correlation Between Eastman Kodak and Civeo Corp
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Civeo Corp 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 Civeo Corp 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 Civeo Corp, you can compare the effects of market volatilities on Eastman Kodak and Civeo Corp 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 Civeo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Civeo Corp.
Diversification Opportunities for Eastman Kodak and Civeo Corp
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastman and Civeo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Civeo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civeo Corp 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 Civeo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civeo Corp has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Civeo Corp go up and down completely randomly.
Pair Corralation between Eastman Kodak and Civeo Corp
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 3.0 times more return on investment than Civeo Corp. However, Eastman Kodak is 3.0 times more volatile than Civeo Corp. It trades about 0.17 of its potential returns per unit of risk. Civeo Corp is currently generating about -0.25 per unit of risk. If you would invest 505.00 in Eastman Kodak Co on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Eastman Kodak Co or generate 23.76% 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. Civeo Corp
Performance |
| Timeline |
| Eastman Kodak |
| Civeo Corp |
Eastman Kodak and Civeo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Civeo Corp
The main advantage of trading using opposite Eastman Kodak and Civeo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Civeo Corp 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 Civeo Corp will offset losses from the drop in Civeo Corp's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Civeo Corp vs. Network 1 Technologies | Civeo Corp vs. BrightView Holdings | Civeo Corp vs. Maximus | Civeo Corp vs. CBIZ 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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