Correlation Between Eastman Kodak and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Molson Coors 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 Molson Coors 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 Molson Coors Brewing, you can compare the effects of market volatilities on Eastman Kodak and Molson Coors 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 Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Molson Coors.
Diversification Opportunities for Eastman Kodak and Molson Coors
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastman and Molson is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing 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 Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Brewing has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Molson Coors go up and down completely randomly.
Pair Corralation between Eastman Kodak and Molson Coors
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 4.63 times more return on investment than Molson Coors. However, Eastman Kodak is 4.63 times more volatile than Molson Coors Brewing. It trades about 0.32 of its potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.4 per unit of risk. If you would invest 472.00 in Eastman Kodak Co on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Eastman Kodak Co or generate 53.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Molson Coors Brewing
Performance |
| Timeline |
| Eastman Kodak |
| Molson Coors Brewing |
Eastman Kodak and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Molson Coors
The main advantage of trading using opposite Eastman Kodak and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |