Correlation Between Eastman Kodak and Verde Clean
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Verde Clean 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 Verde Clean 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 Verde Clean Fuels, you can compare the effects of market volatilities on Eastman Kodak and Verde Clean 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 Verde Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Verde Clean.
Diversification Opportunities for Eastman Kodak and Verde Clean
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastman and Verde is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Verde Clean Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verde Clean Fuels 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 Verde Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verde Clean Fuels has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Verde Clean go up and down completely randomly.
Pair Corralation between Eastman Kodak and Verde Clean
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 2.45 times more return on investment than Verde Clean. However, Eastman Kodak is 2.45 times more volatile than Verde Clean Fuels. It trades about 0.17 of its potential returns per unit of risk. Verde Clean Fuels is currently generating about 0.11 per unit of risk. If you would invest 505.00 in Eastman Kodak Co on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Eastman Kodak Co or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Verde Clean Fuels
Performance |
| Timeline |
| Eastman Kodak |
| Verde Clean Fuels |
Eastman Kodak and Verde Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Verde Clean
The main advantage of trading using opposite Eastman Kodak and Verde Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Verde Clean 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 Verde Clean will offset losses from the drop in Verde Clean's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Verde Clean vs. Fusion Fuel Green | Verde Clean vs. Advent Technologies Holdings | Verde Clean vs. Eos Energy Enterprises | Verde Clean vs. CuriosityStream |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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