Correlation Between Eastman Kodak and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Marfrig Global 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 Marfrig Global 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 Marfrig Global Foods, you can compare the effects of market volatilities on Eastman Kodak and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Marfrig Global.
Diversification Opportunities for Eastman Kodak and Marfrig Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastman and Marfrig is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Marfrig Global go up and down completely randomly.
Pair Corralation between Eastman Kodak and Marfrig Global
Given the investment horizon of 90 days Eastman Kodak is expected to generate 2.5 times less return on investment than Marfrig Global. In addition to that, Eastman Kodak is 1.81 times more volatile than Marfrig Global Foods. It trades about 0.06 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.28 per unit of volatility. If you would invest 255.00 in Marfrig Global Foods on August 27, 2024 and sell it today you would earn a total of 53.00 from holding Marfrig Global Foods or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Marfrig Global Foods
Performance |
| Timeline |
| Eastman Kodak |
| Marfrig Global Foods |
Eastman Kodak and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Marfrig Global
The main advantage of trading using opposite Eastman Kodak and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. The A2 Milk | Marfrig Global vs. BioAdaptives | Marfrig Global vs. General Mills |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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