Correlation Between Eastman Kodak and Funko
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Funko 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 Funko 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 Funko Inc, you can compare the effects of market volatilities on Eastman Kodak and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Funko.
Diversification Opportunities for Eastman Kodak and Funko
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastman and Funko is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Funko go up and down completely randomly.
Pair Corralation between Eastman Kodak and Funko
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 2.1 times more return on investment than Funko. However, Eastman Kodak is 2.1 times more volatile than Funko Inc. It trades about 0.32 of its potential returns per unit of risk. Funko Inc is currently generating about 0.05 per unit of risk. If you would invest 470.00 in Eastman Kodak Co on September 4, 2024 and sell it today you would earn a total of 252.00 from holding Eastman Kodak Co or generate 53.62% 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. Funko Inc
Performance |
| Timeline |
| Eastman Kodak |
| Funko Inc |
Eastman Kodak and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Funko
The main advantage of trading using opposite Eastman Kodak and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko'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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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