Correlation Between Eastman Kodak and Intelligent Bio

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

Diversification Opportunities for Eastman Kodak and Intelligent Bio

0.03

Correlation Coefficient

Eastman Kodak  Intelligent Bio

Significant diversification

The 3 months correlation between Eastman and Intelligent is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eastman Kodak Co and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Eastman Kodak i.e., Eastman Kodak and Intelligent Bio go up and down completely randomly.

Pair Corralation between Eastman Kodak and Intelligent Bio

Given the investment horizon of 90 days Eastman Kodak is expected to generate 1.19 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, Eastman Kodak Co is 1.57 times less risky than Intelligent Bio. It trades about 0.12 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  129.00  in Intelligent Bio Solutions on September 5, 2024 and sell it today you would earn a total of  37.00  from holding Intelligent Bio Solutions or generate 28.68% return on investment over 90 days.

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

Eastman Kodak Co  vs.  Intelligent Bio Solutions

Eastman Kodak

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eastman Kodak Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent fundamental indicators, Eastman Kodak disclosed solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Bio Solutions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eastman Kodak and Intelligent Bio

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

The idea behind Eastman Kodak Co and Intelligent Bio Solutions 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.