Correlation Between Eastman Kodak and Waystar Holding

Can any of the company-specific risk be diversified away by investing in both Eastman Kodak and Waystar Holding 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 Waystar Holding 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 Waystar Holding Corp, you can compare the effects of market volatilities on Eastman Kodak and Waystar Holding 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 Waystar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastman Kodak and Waystar Holding.

Diversification Opportunities for Eastman Kodak and Waystar Holding

0.55

Correlation Coefficient

Eastman Kodak  Waystar Holding

Very weak diversification

The 3 months correlation between Eastman and Waystar is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Waystar Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waystar Holding Corp 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 Waystar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waystar Holding Corp has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Waystar Holding go up and down completely randomly.

Pair Corralation between Eastman Kodak and Waystar Holding

Given the investment horizon of 90 days Eastman Kodak Co is expected to under-perform the Waystar Holding. In addition to that, Eastman Kodak is 1.23 times more volatile than Waystar Holding Corp. It trades about -0.01 of its total potential returns per unit of risk. Waystar Holding Corp is currently generating about 0.04 per unit of volatility. If you would invest  3,706  in Waystar Holding Corp on December 28, 2024 and sell it today you would earn a total of  148.00  from holding Waystar Holding Corp or generate 3.99% 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.  Waystar Holding Corp

Eastman Kodak

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eastman Kodak Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Eastman Kodak is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Waystar Holding Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Waystar Holding Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Waystar Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Eastman Kodak and Waystar Holding

The main advantage of trading using opposite Eastman Kodak and Waystar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastman Kodak position performs unexpectedly, Waystar Holding 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 Waystar Holding will offset losses from the drop in Waystar Holding's long position.

The idea behind Eastman Kodak Co and Waystar Holding Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.