Correlation Between Harman International and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Harman International 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 Harman International and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harman International Industries and Eastman Kodak Co, you can compare the effects of market volatilities on Harman International 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 Harman International with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harman International and Eastman Kodak.
Diversification Opportunities for Harman International and Eastman Kodak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harman and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harman International Industrie and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Harman International 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 Harman International Industries 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 Harman International i.e., Harman International and Eastman Kodak go up and down completely randomly.
Pair Corralation between Harman International and Eastman Kodak
If you would invest (100.00) in Harman International Industries on February 12, 2024 and sell it today you would earn a total of 100.00 from holding Harman International Industries or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harman International Industrie vs. Eastman Kodak Co
Performance |
| Timeline |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastman Kodak |
Harman International and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harman International and Eastman Kodak
The main advantage of trading using opposite Harman International and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harman International 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.| Harman International vs. Alphatec Holdings | Harman International vs. Talis Biomedical Corp | Harman International vs. Dana Inc | Harman International vs. Amgen Inc |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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