Correlation Between BBB Foods and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both BBB Foods 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 BBB Foods and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Eastman Kodak Co, you can compare the effects of market volatilities on BBB Foods 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 BBB Foods with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Eastman Kodak.
Diversification Opportunities for BBB Foods and Eastman Kodak
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BBB and Eastman is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and BBB Foods 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 BBB Foods 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 BBB Foods i.e., BBB Foods and Eastman Kodak go up and down completely randomly.
Pair Corralation between BBB Foods and Eastman Kodak
Given the investment horizon of 90 days BBB Foods is expected to generate 0.73 times more return on investment than Eastman Kodak. However, BBB Foods is 1.37 times less risky than Eastman Kodak. It trades about 0.09 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.04 per unit of risk. If you would invest 1,750 in BBB Foods on August 31, 2024 and sell it today you would earn a total of 1,072 from holding BBB Foods or generate 61.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.81% |
| Values | Daily Returns |
BBB Foods vs. Eastman Kodak Co
Performance |
| Timeline |
| BBB Foods |
| Eastman Kodak |
BBB Foods and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Eastman Kodak
The main advantage of trading using opposite BBB Foods and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods 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.| BBB Foods vs. Citizens Bancorp Investment | BBB Foods vs. Stepstone Group | BBB Foods vs. Independence Realty Trust | BBB Foods vs. Western Sierra Mining |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |