Correlation Between Eastman Kodak and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Eastman Kodak and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Uber Technologies.
Diversification Opportunities for Eastman Kodak and Uber Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and Uber is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Uber Technologies go up and down completely randomly.
Pair Corralation between Eastman Kodak and Uber Technologies
Given the investment horizon of 90 days Eastman Kodak is expected to generate 2.04 times less return on investment than Uber Technologies. In addition to that, Eastman Kodak is 1.79 times more volatile than Uber Technologies. It trades about 0.02 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.08 per unit of volatility. If you would invest 4,042 in Uber Technologies on August 27, 2024 and sell it today you would earn a total of 3,109 from holding Uber Technologies or generate 76.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Uber Technologies
Performance |
| Timeline |
| Eastman Kodak |
| Uber Technologies |
Eastman Kodak and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Uber Technologies
The main advantage of trading using opposite Eastman Kodak and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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