Correlation Between Eastman Kodak and Kyocera ADR
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Kyocera ADR 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 Kyocera ADR 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 Kyocera ADR, you can compare the effects of market volatilities on Eastman Kodak and Kyocera ADR 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 Kyocera ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Kyocera ADR.
Diversification Opportunities for Eastman Kodak and Kyocera ADR
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastman and Kyocera is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Kyocera ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyocera ADR 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 Kyocera ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyocera ADR has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Kyocera ADR go up and down completely randomly.
Pair Corralation between Eastman Kodak and Kyocera ADR
If you would invest 461.00 in Eastman Kodak Co on January 25, 2024 and sell it today you would earn a total of 6.00 from holding Eastman Kodak Co or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Eastman Kodak Co vs. Kyocera ADR
Performance |
| Timeline |
| Eastman Kodak |
| Kyocera ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Kodak and Kyocera ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Kyocera ADR
The main advantage of trading using opposite Eastman Kodak and Kyocera ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Kyocera ADR 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 Kyocera ADR will offset losses from the drop in Kyocera ADR's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Kyocera ADR vs. Hitachi Ltd ADR | Kyocera ADR vs. Toshiba Corp PK | Kyocera ADR vs. Sumitomo Corp ADR | Kyocera ADR vs. Hitachi |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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