Correlation Between DIH Holdings and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both DIH Holdings and Kaiser Aluminum 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 DIH Holdings and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIH Holdings US, and Kaiser Aluminum, you can compare the effects of market volatilities on DIH Holdings and Kaiser Aluminum 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 DIH Holdings with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIH Holdings and Kaiser Aluminum.
Diversification Opportunities for DIH Holdings and Kaiser Aluminum
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DIH and Kaiser is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding DIH Holdings US, and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and DIH 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 DIH Holdings US, are associated (or correlated) with Kaiser Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Aluminum has no effect on the direction of DIH Holdings i.e., DIH Holdings and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between DIH Holdings and Kaiser Aluminum
Given the investment horizon of 90 days DIH Holdings US, is expected to under-perform the Kaiser Aluminum. In addition to that, DIH Holdings is 2.49 times more volatile than Kaiser Aluminum. It trades about -0.05 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about -0.02 per unit of volatility. If you would invest 8,653 in Kaiser Aluminum on September 13, 2024 and sell it today you would lose (968.00) from holding Kaiser Aluminum or give up 11.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIH Holdings US, vs. Kaiser Aluminum
Performance |
| Timeline |
| DIH Holdings US, |
| Kaiser Aluminum |
DIH Holdings and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIH Holdings and Kaiser Aluminum
The main advantage of trading using opposite DIH Holdings and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIH Holdings position performs unexpectedly, Kaiser Aluminum 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 Kaiser Aluminum will offset losses from the drop in Kaiser Aluminum's long position.| DIH Holdings vs. Palomar Holdings | DIH Holdings vs. Trupanion | DIH Holdings vs. Aspen Insurance Holdings | DIH Holdings vs. Radcom |
| Kaiser Aluminum vs. Fortitude Gold Corp | Kaiser Aluminum vs. New Gold | Kaiser Aluminum vs. Galiano Gold | Kaiser Aluminum vs. GoldMining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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