Correlation Between GEN Restaurant and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant 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 GEN Restaurant and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEN Restaurant Group, and Kaiser Aluminum, you can compare the effects of market volatilities on GEN Restaurant 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 GEN Restaurant with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Kaiser Aluminum.
Diversification Opportunities for GEN Restaurant and Kaiser Aluminum
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GEN and Kaiser is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and GEN Restaurant 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 GEN Restaurant Group, 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 GEN Restaurant i.e., GEN Restaurant and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between GEN Restaurant and Kaiser Aluminum
Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the Kaiser Aluminum. In addition to that, GEN Restaurant is 2.02 times more volatile than Kaiser Aluminum. It trades about -0.01 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.11 per unit of volatility. If you would invest 7,737 in Kaiser Aluminum on September 3, 2024 and sell it today you would earn a total of 391.00 from holding Kaiser Aluminum or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Kaiser Aluminum
Performance |
| Timeline |
| GEN Restaurant Group, |
| Kaiser Aluminum |
GEN Restaurant and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Kaiser Aluminum
The main advantage of trading using opposite GEN Restaurant and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant 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.| GEN Restaurant vs. SL Green Realty | GEN Restaurant vs. Haverty Furniture Companies | GEN Restaurant vs. FiscalNote Holdings | GEN Restaurant vs. Cadence Design Systems |
| Kaiser Aluminum vs. SPACE | Kaiser Aluminum vs. Ampleforth | Kaiser Aluminum vs. ionet | Kaiser Aluminum vs. Memecoin |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |