Correlation Between Eastman Kodak and PHLX Swiss
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and PHLX Swiss 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 PHLX Swiss 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 PHLX Swiss Franc, you can compare the effects of market volatilities on Eastman Kodak and PHLX Swiss 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 PHLX Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and PHLX Swiss.
Diversification Opportunities for Eastman Kodak and PHLX Swiss
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and PHLX is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and PHLX Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLX Swiss Franc 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 PHLX Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLX Swiss Franc has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and PHLX Swiss go up and down completely randomly.
Pair Corralation between Eastman Kodak and PHLX Swiss
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 8.57 times more return on investment than PHLX Swiss. However, Eastman Kodak is 8.57 times more volatile than PHLX Swiss Franc. It trades about 0.05 of its potential returns per unit of risk. PHLX Swiss Franc is currently generating about 0.02 per unit of risk. If you would invest 363.00 in Eastman Kodak Co on September 3, 2024 and sell it today you would earn a total of 362.00 from holding Eastman Kodak Co or generate 99.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Eastman Kodak Co vs. PHLX Swiss Franc
Performance |
| Timeline |
Eastman Kodak and PHLX Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Eastman Kodak Co
Pair trading matchups for Eastman Kodak
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Pair Trading with Eastman Kodak and PHLX Swiss
The main advantage of trading using opposite Eastman Kodak and PHLX Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, PHLX Swiss 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 PHLX Swiss will offset losses from the drop in PHLX Swiss' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| PHLX Swiss vs. American Axle Manufacturing | PHLX Swiss vs. VirnetX Holding Corp | PHLX Swiss vs. Tesla Inc | PHLX Swiss vs. Q2 Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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