Correlation Between Eastman Kodak and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Flutter Entertainment 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 Flutter Entertainment 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 Flutter Entertainment plc, you can compare the effects of market volatilities on Eastman Kodak and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Flutter Entertainment.
Diversification Opportunities for Eastman Kodak and Flutter Entertainment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastman and Flutter is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Eastman Kodak and Flutter Entertainment
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 4.36 times more return on investment than Flutter Entertainment. However, Eastman Kodak is 4.36 times more volatile than Flutter Entertainment plc. It trades about 0.34 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.14 per unit of risk. If you would invest 456.00 in Eastman Kodak Co on September 15, 2024 and sell it today you would earn a total of 224.00 from holding Eastman Kodak Co or generate 49.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Flutter Entertainment plc
Performance |
| Timeline |
| Eastman Kodak |
| Flutter Entertainment plc |
Eastman Kodak and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Flutter Entertainment
The main advantage of trading using opposite Eastman Kodak and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Eastman Kodak vs. Rigetti Computing | Eastman Kodak vs. D Wave Quantum | Eastman Kodak vs. Desktop Metal | Eastman Kodak vs. Quantum Computing |
| Flutter Entertainment vs. Grayscale Digital Large | Flutter Entertainment vs. Quantum eMotion | Flutter Entertainment vs. Bright Minds Biosciences | Flutter Entertainment vs. Eastman Kodak Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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