Correlation Between Eastman Kodak and Teledyne Technologies
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Teledyne Technologies 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 Teledyne Technologies 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 Teledyne Technologies Incorporated, you can compare the effects of market volatilities on Eastman Kodak and Teledyne Technologies 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 Teledyne Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Teledyne Technologies.
Diversification Opportunities for Eastman Kodak and Teledyne Technologies
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastman and Teledyne is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Teledyne Technologies Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teledyne Technologies 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 Teledyne Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teledyne Technologies has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Teledyne Technologies go up and down completely randomly.
Pair Corralation between Eastman Kodak and Teledyne Technologies
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 1.09 times more return on investment than Teledyne Technologies. However, Eastman Kodak is 1.09 times more volatile than Teledyne Technologies Incorporated. It trades about 0.02 of its potential returns per unit of risk. Teledyne Technologies Incorporated is currently generating about -0.27 per unit of risk. If you would invest 457.00 in Eastman Kodak Co on January 26, 2024 and sell it today you would earn a total of 1.00 from holding Eastman Kodak Co or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eastman Kodak Co vs. Teledyne Technologies Incorpor
Performance |
| Timeline |
| Eastman Kodak |
| Teledyne Technologies |
Eastman Kodak and Teledyne Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Teledyne Technologies
The main advantage of trading using opposite Eastman Kodak and Teledyne Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Teledyne Technologies 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 Teledyne Technologies will offset losses from the drop in Teledyne Technologies' long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Teledyne Technologies vs. AERWINS Technologies | Teledyne Technologies vs. Cepton Inc | Teledyne Technologies vs. SaverOne 2014 Ltd | Teledyne Technologies vs. Mind Technology Pref |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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