Correlation Between Kaiser Aluminum and Antero Midstream
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and Antero Midstream 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 Kaiser Aluminum and Antero Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and Antero Midstream Partners, you can compare the effects of market volatilities on Kaiser Aluminum and Antero Midstream 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 Kaiser Aluminum with a short position of Antero Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Antero Midstream.
Diversification Opportunities for Kaiser Aluminum and Antero Midstream
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kaiser and Antero is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Antero Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Midstream Partners and Kaiser Aluminum 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 Kaiser Aluminum are associated (or correlated) with Antero Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Midstream Partners has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Antero Midstream go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Antero Midstream
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 1.65 times more return on investment than Antero Midstream. However, Kaiser Aluminum is 1.65 times more volatile than Antero Midstream Partners. It trades about 0.13 of its potential returns per unit of risk. Antero Midstream Partners is currently generating about 0.19 per unit of risk. If you would invest 7,607 in Kaiser Aluminum on August 29, 2024 and sell it today you would earn a total of 561.00 from holding Kaiser Aluminum or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. Antero Midstream Partners
Performance |
| Timeline |
| Kaiser Aluminum |
| Antero Midstream Partners |
Kaiser Aluminum and Antero Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Antero Midstream
The main advantage of trading using opposite Kaiser Aluminum and Antero Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Antero Midstream 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 Antero Midstream will offset losses from the drop in Antero Midstream's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| Antero Midstream vs. EnLink Midstream LLC | Antero Midstream vs. Western Midstream Partners | Antero Midstream vs. Plains GP Holdings | Antero Midstream vs. Plains All American |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |