Correlation Between NYSE Composite and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Eastman Kodak 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 NYSE Composite and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Eastman Kodak Co, you can compare the effects of market volatilities on NYSE Composite and Eastman Kodak 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 NYSE Composite with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Eastman Kodak.
Diversification Opportunities for NYSE Composite and Eastman Kodak
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Eastman is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and NYSE Composite 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 NYSE Composite are associated (or correlated) with Eastman Kodak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Kodak has no effect on the direction of NYSE Composite i.e., NYSE Composite and Eastman Kodak go up and down completely randomly.
Pair Corralation between NYSE Composite and Eastman Kodak
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.2 times more return on investment than Eastman Kodak. However, NYSE Composite is 4.91 times less risky than Eastman Kodak. It trades about 0.11 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.01 per unit of risk. If you would invest 1,760,743 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 251,602 from holding NYSE Composite or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Eastman Kodak Co
Performance |
| Timeline |
NYSE Composite and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Eastman Kodak Co
Pair trading matchups for Eastman Kodak
Pair Trading with NYSE Composite and Eastman Kodak
The main advantage of trading using opposite NYSE Composite and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Eastman Kodak 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 Eastman Kodak will offset losses from the drop in Eastman Kodak's long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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