Correlation Between Eastman Kodak and PAO NOVATEK
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and PAO NOVATEK 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 PAO NOVATEK 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 PAO NOVATEK, you can compare the effects of market volatilities on Eastman Kodak and PAO NOVATEK 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 PAO NOVATEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and PAO NOVATEK.
Diversification Opportunities for Eastman Kodak and PAO NOVATEK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and PAO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and PAO NOVATEK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAO NOVATEK 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 PAO NOVATEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAO NOVATEK has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and PAO NOVATEK go up and down completely randomly.
Pair Corralation between Eastman Kodak and PAO NOVATEK
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Eastman Kodak Co vs. PAO NOVATEK
Performance |
| Timeline |
| Eastman Kodak |
| PAO NOVATEK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Kodak and PAO NOVATEK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and PAO NOVATEK
The main advantage of trading using opposite Eastman Kodak and PAO NOVATEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, PAO NOVATEK 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 PAO NOVATEK will offset losses from the drop in PAO NOVATEK's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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