Correlation Between Eastman Kodak and ARCA Gold
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and ARCA Gold 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 ARCA Gold 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 ARCA Gold BUGS, you can compare the effects of market volatilities on Eastman Kodak and ARCA Gold 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 ARCA Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and ARCA Gold.
Diversification Opportunities for Eastman Kodak and ARCA Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and ARCA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and ARCA Gold BUGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARCA Gold BUGS 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 ARCA Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARCA Gold BUGS has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and ARCA Gold go up and down completely randomly.
Pair Corralation between Eastman Kodak and ARCA Gold
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 2.37 times more return on investment than ARCA Gold. However, Eastman Kodak is 2.37 times more volatile than ARCA Gold BUGS. It trades about 0.07 of its potential returns per unit of risk. ARCA Gold BUGS is currently generating about 0.06 per unit of risk. If you would invest 385.00 in Eastman Kodak Co on September 12, 2024 and sell it today you would earn a total of 281.00 from holding Eastman Kodak Co or generate 72.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Eastman Kodak Co vs. ARCA Gold BUGS
Performance |
| Timeline |
Eastman Kodak and ARCA Gold Volatility Contrast
Predicted Return Density |
| Returns |
Eastman Kodak Co
Pair trading matchups for Eastman Kodak
ARCA Gold BUGS
Pair trading matchups for ARCA Gold
Pair Trading with Eastman Kodak and ARCA Gold
The main advantage of trading using opposite Eastman Kodak and ARCA Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, ARCA Gold 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 ARCA Gold will offset losses from the drop in ARCA Gold's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| ARCA Gold vs. Analog Devices | ARCA Gold vs. Finnair Oyj | ARCA Gold vs. Valneva SE ADR | ARCA Gold vs. Porvair plc |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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