Correlation Between Eastman Kodak and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Israel Discount 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 Israel Discount 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 Israel Discount Bank, you can compare the effects of market volatilities on Eastman Kodak and Israel Discount 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 Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Israel Discount.
Diversification Opportunities for Eastman Kodak and Israel Discount
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastman and Israel is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank 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 Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Israel Discount go up and down completely randomly.
Pair Corralation between Eastman Kodak and Israel Discount
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 0.74 times more return on investment than Israel Discount. However, Eastman Kodak Co is 1.35 times less risky than Israel Discount. It trades about 0.06 of its potential returns per unit of risk. Israel Discount Bank is currently generating about 0.04 per unit of risk. If you would invest 355.00 in Eastman Kodak Co on November 2, 2024 and sell it today you would earn a total of 391.00 from holding Eastman Kodak Co or generate 110.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.96% |
| Values | Daily Returns |
Eastman Kodak Co vs. Israel Discount Bank
Performance |
| Timeline |
| Eastman Kodak |
| Israel Discount Bank |
Eastman Kodak and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Israel Discount
The main advantage of trading using opposite Eastman Kodak and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Israel Discount vs. Baraboo Bancorporation | Israel Discount vs. Schweizerische Nationalbank | Israel Discount vs. Danske Bank AS | Israel Discount vs. Absa Group Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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