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
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastman and Hamilton is 0.63. 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 Co is expected to generate 2.17 times more return on investment than Hamilton Beach. However, Eastman Kodak is 2.17 times more volatile than Hamilton Beach Brands. It trades about 0.11 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.05 per unit of risk. If you would invest 346.00 in Eastman Kodak Co on January 21, 2024 and sell it today you would earn a total of 116.00 from holding Eastman Kodak Co or generate 33.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| 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. LG Display Co | Eastman Kodak vs. Sony Corp | Eastman Kodak vs. Sonos Inc | Eastman Kodak vs. Vizio Holding Corp |
| Hamilton Beach vs. Meta Materials | Hamilton Beach vs. Sphere 3D Corp | Hamilton Beach vs. Katapult Holdings | Hamilton Beach vs. Aquagold International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |