Correlation Between Phihong Technology and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Phihong Technology 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 Phihong Technology and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phihong Technology Co and Eastman Kodak Co, you can compare the effects of market volatilities on Phihong Technology 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 Phihong Technology with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phihong Technology and Eastman Kodak.
Diversification Opportunities for Phihong Technology and Eastman Kodak
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phihong and Eastman is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Phihong Technology Co and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Phihong Technology 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 Phihong Technology Co 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 Phihong Technology i.e., Phihong Technology and Eastman Kodak go up and down completely randomly.
Pair Corralation between Phihong Technology and Eastman Kodak
Assuming the 90 days trading horizon Phihong Technology Co is expected to under-perform the Eastman Kodak. But the stock apears to be less risky and, when comparing its historical volatility, Phihong Technology Co is 1.96 times less risky than Eastman Kodak. The stock trades about -0.06 of its potential returns per unit of risk. The Eastman Kodak Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Eastman Kodak Co on January 26, 2024 and sell it today you would earn a total of 133.00 from holding Eastman Kodak Co or generate 40.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Phihong Technology Co vs. Eastman Kodak Co
Performance |
| Timeline |
| Phihong Technology |
| Eastman Kodak |
Phihong Technology and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phihong Technology and Eastman Kodak
The main advantage of trading using opposite Phihong Technology and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phihong Technology 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.| Phihong Technology vs. Ichia Technologies | Phihong Technology vs. Elan Microelectronics Corp | Phihong Technology vs. Amtran Technology Co | Phihong Technology vs. Sunplus Technology Co |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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