Correlation Between Sun Country and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Sun Country 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 Sun Country and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Country Airlines and Eastman Kodak Co, you can compare the effects of market volatilities on Sun Country 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 Sun Country with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Eastman Kodak.
Diversification Opportunities for Sun Country and Eastman Kodak
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Eastman is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Sun Country 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 Sun Country Airlines 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 Sun Country i.e., Sun Country and Eastman Kodak go up and down completely randomly.
Pair Corralation between Sun Country and Eastman Kodak
Given the investment horizon of 90 days Sun Country is expected to generate 27.65 times less return on investment than Eastman Kodak. But when comparing it to its historical volatility, Sun Country Airlines is 1.31 times less risky than Eastman Kodak. It trades about 0.0 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 335.00 in Eastman Kodak Co on August 31, 2024 and sell it today you would earn a total of 390.00 from holding Eastman Kodak Co or generate 116.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Eastman Kodak Co
Performance |
| Timeline |
| Sun Country Airlines |
| Eastman Kodak |
Sun Country and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Eastman Kodak
The main advantage of trading using opposite Sun Country and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country 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.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. SkyWest | Sun Country vs. Air Transport Services |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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