Correlation Between Eastman Kodak and Harman International
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Harman International 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 Harman International 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 Harman International Industries, you can compare the effects of market volatilities on Eastman Kodak and Harman International 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 Harman International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Harman International.
Diversification Opportunities for Eastman Kodak and Harman International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and Harman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Harman International Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harman International 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 Harman International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harman International has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Harman International go up and down completely randomly.
Pair Corralation between Eastman Kodak and Harman International
If you would invest 352.00 in Eastman Kodak Co on January 25, 2024 and sell it today you would earn a total of 115.00 from holding Eastman Kodak Co or generate 32.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Harman International Industrie
Performance |
| Timeline |
| Eastman Kodak |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Kodak and Harman International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Harman International
The main advantage of trading using opposite Eastman Kodak and Harman International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Harman International 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 Harman International will offset losses from the drop in Harman International's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Harman International vs. Compania Cervecerias Unidas | Harman International vs. CanSino Biologics | Harman International vs. Willamette Valley Vineyards | Harman International vs. Constellation Brands Class |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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