Correlation Between Eastman Kodak and Quantum
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Quantum 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 Quantum 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 Quantum, you can compare the effects of market volatilities on Eastman Kodak and Quantum 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 Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Quantum.
Diversification Opportunities for Eastman Kodak and Quantum
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastman and Quantum is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum 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 Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Quantum go up and down completely randomly.
Pair Corralation between Eastman Kodak and Quantum
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 0.17 times more return on investment than Quantum. However, Eastman Kodak Co is 5.83 times less risky than Quantum. It trades about 0.18 of its potential returns per unit of risk. Quantum is currently generating about 0.03 per unit of risk. If you would invest 681.00 in Eastman Kodak Co on October 23, 2024 and sell it today you would earn a total of 81.00 from holding Eastman Kodak Co or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Quantum
Performance |
| Timeline |
| Eastman Kodak |
| Quantum |
Eastman Kodak and Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Quantum
The main advantage of trading using opposite Eastman Kodak and Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Quantum 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 Quantum will offset losses from the drop in Quantum's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Quantum vs. Rigetti Computing | Quantum vs. D Wave Quantum | Quantum vs. IONQ Inc | Quantum vs. Desktop Metal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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