Correlation Between Eastman Kodak and PS Business
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Eastman Kodak and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and PS Business.
Diversification Opportunities for Eastman Kodak and PS Business
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastman and PSBZP is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and PS Business go up and down completely randomly.
Pair Corralation between Eastman Kodak and PS Business
If you would invest 384.00 in Eastman Kodak Co on September 1, 2024 and sell it today you would earn a total of 341.00 from holding Eastman Kodak Co or generate 88.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Eastman Kodak Co vs. PS Business Parks
Performance |
| Timeline |
| Eastman Kodak |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Kodak and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and PS Business
The main advantage of trading using opposite Eastman Kodak and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| PS Business vs. Townsquare Media | PS Business vs. Inflection Point Acquisition | PS Business vs. Boston Omaha Corp | PS Business vs. WiMi Hologram Cloud |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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