Correlation Between Eastman Kodak and Meituan ADR
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Meituan ADR 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 Meituan ADR 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 Meituan ADR, you can compare the effects of market volatilities on Eastman Kodak and Meituan ADR 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 Meituan ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Meituan ADR.
Diversification Opportunities for Eastman Kodak and Meituan ADR
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastman and Meituan is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Meituan ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan ADR 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 Meituan ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan ADR has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Meituan ADR go up and down completely randomly.
Pair Corralation between Eastman Kodak and Meituan ADR
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 1.2 times more return on investment than Meituan ADR. However, Eastman Kodak is 1.2 times more volatile than Meituan ADR. It trades about 0.06 of its potential returns per unit of risk. Meituan ADR is currently generating about 0.02 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Meituan ADR
Performance |
| Timeline |
| Eastman Kodak |
| Meituan ADR |
Eastman Kodak and Meituan ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Meituan ADR
The main advantage of trading using opposite Eastman Kodak and Meituan ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Meituan ADR 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 Meituan ADR will offset losses from the drop in Meituan ADR's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Meituan ADR vs. Jd Com Inc | Meituan ADR vs. MOGU Inc | Meituan ADR vs. Oriental Culture Holding | Meituan ADR vs. Alibaba Group Holding |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |