Correlation Between PS Business and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both PS Business 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 PS Business and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PS Business Parks and Eastman Kodak Co, you can compare the effects of market volatilities on PS Business 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 PS Business with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS Business and Eastman Kodak.
Diversification Opportunities for PS Business and Eastman Kodak
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PSBZP and Eastman is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PS Business Parks and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and PS Business 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 PS Business Parks 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 PS Business i.e., PS Business and Eastman Kodak go up and down completely randomly.
Pair Corralation between PS Business and Eastman Kodak
If you would invest 505.00 in Eastman Kodak Co on August 29, 2024 and sell it today you would earn a total of 157.00 from holding Eastman Kodak Co or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
PS Business Parks vs. Eastman Kodak Co
Performance |
| Timeline |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastman Kodak |
PS Business and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PS Business and Eastman Kodak
The main advantage of trading using opposite PS Business and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS Business 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.| PS Business vs. Eastman Kodak Co | PS Business vs. The Gap, | PS Business vs. Yuexiu Transport Infrastructure | PS Business vs. Stepan Company |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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