Correlation Between Eastman Kodak and LILLY
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By analyzing existing cross correlation between Eastman Kodak Co and LILLY ELI 275, you can compare the effects of market volatilities on Eastman Kodak and LILLY 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 LILLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and LILLY.
Diversification Opportunities for Eastman Kodak and LILLY
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastman and LILLY is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and LILLY ELI 275 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LILLY ELI 275 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 LILLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LILLY ELI 275 has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and LILLY go up and down completely randomly.
Pair Corralation between Eastman Kodak and LILLY
Given the investment horizon of 90 days Eastman Kodak Co is expected to generate 9.13 times more return on investment than LILLY. However, Eastman Kodak is 9.13 times more volatile than LILLY ELI 275. It trades about 0.16 of its potential returns per unit of risk. LILLY ELI 275 is currently generating about -0.18 per unit of risk. If you would invest 625.00 in Eastman Kodak Co on September 25, 2024 and sell it today you would earn a total of 90.00 from holding Eastman Kodak Co or generate 14.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 85.71% |
Values | Daily Returns |
Eastman Kodak Co vs. LILLY ELI 275
Performance |
Timeline |
Eastman Kodak |
LILLY ELI 275 |
Eastman Kodak and LILLY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastman Kodak and LILLY
The main advantage of trading using opposite Eastman Kodak and LILLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, LILLY 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 LILLY will offset losses from the drop in LILLY's long position.Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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