Correlation Between Eastman Kodak and Hamilton Beach
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Hamilton Beach 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 Hamilton Beach 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 Hamilton Beach Brands, you can compare the effects of market volatilities on Eastman Kodak and Hamilton Beach 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 Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Hamilton Beach.
Diversification Opportunities for Eastman Kodak and Hamilton Beach
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastman and Hamilton is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands 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 Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Hamilton Beach go up and down completely randomly.
Pair Corralation between Eastman Kodak and Hamilton Beach
Given the investment horizon of 90 days Eastman Kodak is expected to generate 3.52 times less return on investment than Hamilton Beach. In addition to that, Eastman Kodak is 1.51 times more volatile than Hamilton Beach Brands. It trades about 0.02 of its total potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.09 per unit of volatility. If you would invest 1,112 in Hamilton Beach Brands on December 29, 2023 and sell it today you would earn a total of 1,346 from holding Hamilton Beach Brands or generate 121.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eastman Kodak Co vs. Hamilton Beach Brands
Performance |
Timeline |
Eastman Kodak |
Hamilton Beach Brands |
Eastman Kodak and Hamilton Beach Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastman Kodak and Hamilton Beach
The main advantage of trading using opposite Eastman Kodak and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Hamilton Beach 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 Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.Eastman Kodak vs. Desktop Metal | Eastman Kodak vs. Fabrinet | Eastman Kodak vs. Kimball Electronics | Eastman Kodak vs. Knowles Cor |
Hamilton Beach vs. Viomi Technology ADR | Hamilton Beach vs. Energy Focu | Hamilton Beach vs. Nova Lifestyle I | Hamilton Beach vs. Flexsteel Industries |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |