Correlation Between Eastman Kodak and RediShred Capital
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and RediShred Capital 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 RediShred Capital 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 RediShred Capital Corp, you can compare the effects of market volatilities on Eastman Kodak and RediShred Capital 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 RediShred Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and RediShred Capital.
Diversification Opportunities for Eastman Kodak and RediShred Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastman and RediShred is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and RediShred Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RediShred Capital Corp 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 RediShred Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RediShred Capital Corp has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and RediShred Capital go up and down completely randomly.
Pair Corralation between Eastman Kodak and RediShred Capital
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 1.98 times more return on investment than RediShred Capital. However, Eastman Kodak is 1.98 times more volatile than RediShred Capital Corp. It trades about 0.15 of its potential returns per unit of risk. RediShred Capital Corp is currently generating about 0.25 per unit of risk. If you would invest 504.00 in Eastman Kodak Co on September 3, 2024 and sell it today you would earn a total of 221.00 from holding Eastman Kodak Co or generate 43.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Eastman Kodak Co vs. RediShred Capital Corp
Performance |
| Timeline |
| Eastman Kodak |
| RediShred Capital Corp |
Eastman Kodak and RediShred Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and RediShred Capital
The main advantage of trading using opposite Eastman Kodak and RediShred Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, RediShred Capital 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 RediShred Capital will offset losses from the drop in RediShred Capital's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| RediShred Capital vs. SMX Public Limited | RediShred Capital vs. System1 | RediShred Capital vs. Lichen China Limited | RediShred Capital vs. Eastman Kodak Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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