Correlation Between FiscalNote Holdings and Eastman Kodak

Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings 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 FiscalNote Holdings and Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FiscalNote Holdings and Eastman Kodak Co, you can compare the effects of market volatilities on FiscalNote Holdings 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 FiscalNote Holdings with a short position of Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and Eastman Kodak.

Diversification Opportunities for FiscalNote Holdings and Eastman Kodak

0.68

Correlation Coefficient

FiscalNote Holdings  Eastman Kodak

Poor diversification

The 3 months correlation between FiscalNote and Eastman is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak and FiscalNote Holdings 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 FiscalNote Holdings 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 FiscalNote Holdings i.e., FiscalNote Holdings and Eastman Kodak go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and Eastman Kodak

Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the Eastman Kodak. In addition to that, FiscalNote Holdings is 2.35 times more volatile than Eastman Kodak Co. It trades about -0.02 of its total potential returns per unit of risk. Eastman Kodak Co is currently generating about -0.03 per unit of volatility. If you would invest  685.00  in Eastman Kodak Co on December 30, 2024 and sell it today you would lose (65.00) from holding Eastman Kodak Co or give up 9.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

FiscalNote Holdings  vs.  Eastman Kodak Co

FiscalNote Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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 latest unfluctuating performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with FiscalNote Holdings and Eastman Kodak

The main advantage of trading using opposite FiscalNote Holdings and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings 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 FiscalNote Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.