Correlation Between Eastman Kodak and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Xponential Fitness 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 Xponential Fitness 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 Xponential Fitness, you can compare the effects of market volatilities on Eastman Kodak and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Xponential Fitness.
Diversification Opportunities for Eastman Kodak and Xponential Fitness
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastman and Xponential is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Xponential Fitness go up and down completely randomly.
Pair Corralation between Eastman Kodak and Xponential Fitness
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 1.03 times more return on investment than Xponential Fitness. However, Eastman Kodak is 1.03 times more volatile than Xponential Fitness. It trades about 0.32 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.17 per unit of risk. If you would invest 470.00 in Eastman Kodak Co on September 4, 2024 and sell it today you would earn a total of 252.00 from holding Eastman Kodak Co or generate 53.62% 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. Xponential Fitness
Performance |
| Timeline |
| Eastman Kodak |
| Xponential Fitness |
Eastman Kodak and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Xponential Fitness
The main advantage of trading using opposite Eastman Kodak and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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