Correlation Between Vuzix Corp and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Vuzix Corp 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 Vuzix Corp and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vuzix Corp Cmn and Eastman Kodak Co, you can compare the effects of market volatilities on Vuzix Corp 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 Vuzix Corp with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and Eastman Kodak.
Diversification Opportunities for Vuzix Corp and Eastman Kodak
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vuzix and Eastman is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Vuzix Corp 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 Vuzix Corp Cmn 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 Vuzix Corp i.e., Vuzix Corp and Eastman Kodak go up and down completely randomly.
Pair Corralation between Vuzix Corp and Eastman Kodak
Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 2.11 times more return on investment than Eastman Kodak. However, Vuzix Corp is 2.11 times more volatile than Eastman Kodak Co. It trades about -0.02 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about -0.06 per unit of risk. If you would invest 134.00 in Vuzix Corp Cmn on January 20, 2024 and sell it today you would lose (8.00) from holding Vuzix Corp Cmn or give up 5.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vuzix Corp Cmn vs. Eastman Kodak Co
Performance |
| Timeline |
| Vuzix Corp Cmn |
| Eastman Kodak |
Vuzix Corp and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vuzix Corp and Eastman Kodak
The main advantage of trading using opposite Vuzix Corp and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp 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.| Vuzix Corp vs. LG Display Co | Vuzix Corp vs. The Singing Machine | Vuzix Corp vs. Wearable Devices | Vuzix Corp vs. Zepp Health Corp |
| Eastman Kodak vs. LG Display Co | Eastman Kodak vs. Sony Corp | Eastman Kodak vs. Sonos Inc | Eastman Kodak vs. Vizio Holding Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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