Correlation Between Hamilton Beach and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Hamilton Beach 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 Hamilton Beach and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Beach Brands and Eastman Kodak Co, you can compare the effects of market volatilities on Hamilton Beach 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 Hamilton Beach with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Eastman Kodak.
Diversification Opportunities for Hamilton Beach and Eastman Kodak
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Eastman is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Hamilton Beach 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 Hamilton Beach Brands 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 Hamilton Beach i.e., Hamilton Beach and Eastman Kodak go up and down completely randomly.
Pair Corralation between Hamilton Beach and Eastman Kodak
Considering the 90-day investment horizon Hamilton Beach Brands is expected to generate 0.66 times more return on investment than Eastman Kodak. However, Hamilton Beach Brands is 1.52 times less risky than Eastman Kodak. It trades about 0.12 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.05 per unit of risk. If you would invest 931.00 in Hamilton Beach Brands on January 19, 2024 and sell it today you would earn a total of 1,168 from holding Hamilton Beach Brands or generate 125.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Beach Brands vs. Eastman Kodak Co
Performance |
| Timeline |
| Hamilton Beach Brands |
| Eastman Kodak |
Hamilton Beach and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Beach and Eastman Kodak
The main advantage of trading using opposite Hamilton Beach and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach 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.| Hamilton Beach vs. Bassett Furniture Industries | Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. La Z Boy Incorporated |
| 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |