Correlation Between Sony and Eastman Kodak

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Can any of the company-specific risk be diversified away by investing in both Sony 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 Sony and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group and Eastman Kodak Co, you can compare the effects of market volatilities on Sony 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 Sony with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and Eastman Kodak.

Diversification Opportunities for Sony and Eastman Kodak

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sony and Eastman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and Sony 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 Sony Group 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 Sony i.e., Sony and Eastman Kodak go up and down completely randomly.

Pair Corralation between Sony and Eastman Kodak

If you would invest  350.00  in Eastman Kodak Co on December 30, 2023 and sell it today you would earn a total of  145.00  from holding Eastman Kodak Co or generate 41.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Sony Group  vs.  Eastman Kodak Co

 Performance 
       Timeline  
Sony Group 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Sony Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sony is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
Eastman Kodak 

Risk-Adjusted Performance

6 of 100

 
Low
 
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Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Eastman Kodak Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal fundamental indicators, Eastman Kodak disclosed solid returns over the last few months and may actually be approaching a breakup point.

Sony and Eastman Kodak Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sony and Eastman Kodak

The main advantage of trading using opposite Sony and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony 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.
The idea behind Sony Group and Eastman Kodak Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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