Correlation Between Eastman Kodak and Valuence Merger
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Valuence Merger 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 Valuence Merger 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 Valuence Merger Corp, you can compare the effects of market volatilities on Eastman Kodak and Valuence Merger 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 Valuence Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Valuence Merger.
Diversification Opportunities for Eastman Kodak and Valuence Merger
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastman and Valuence is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Valuence Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valuence Merger 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 Valuence Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valuence Merger Corp has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Valuence Merger go up and down completely randomly.
Pair Corralation between Eastman Kodak and Valuence Merger
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 3.37 times more return on investment than Valuence Merger. However, Eastman Kodak is 3.37 times more volatile than Valuence Merger Corp. It trades about 0.05 of its potential returns per unit of risk. Valuence Merger Corp is currently generating about 0.02 per unit of risk. If you would invest 384.00 in Eastman Kodak Co on August 30, 2024 and sell it today you would earn a total of 330.00 from holding Eastman Kodak Co or generate 85.94% 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. Valuence Merger Corp
Performance |
| Timeline |
| Eastman Kodak |
| Valuence Merger Corp |
Eastman Kodak and Valuence Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Valuence Merger
The main advantage of trading using opposite Eastman Kodak and Valuence Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Valuence Merger 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 Valuence Merger will offset losses from the drop in Valuence Merger's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Valuence Merger vs. United Homes Group | Valuence Merger vs. HNI Corp | Valuence Merger vs. Eastern Co | Valuence Merger vs. Hudson Pacific Properties |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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