Correlation Between Eastman Kodak and Sony
Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Sony 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 Sony 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 Sony Group, you can compare the effects of market volatilities on Eastman Kodak and Sony 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 Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Sony.
Diversification Opportunities for Eastman Kodak and Sony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastman and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group 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 Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Sony go up and down completely randomly.
Pair Corralation between Eastman Kodak and Sony
If you would invest 475.00 in Eastman Kodak Co on January 19, 2024 and sell it today you would lose (2.00) from holding Eastman Kodak Co or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eastman Kodak Co vs. Sony Group
Performance |
| Timeline |
| Eastman Kodak |
| Sony Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastman Kodak and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastman Kodak and Sony
The main advantage of trading using opposite Eastman Kodak and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Sony 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 Sony will offset losses from the drop in Sony's long position.| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
| Sony vs. Alto Ingredients | Sony vs. Avient Corp | Sony vs. National Beverage Corp | Sony vs. Fresh Grapes LLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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