Correlation Between Kaiser Aluminum and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and Playtika Holding 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 Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and Playtika Holding Corp, you can compare the effects of market volatilities on Kaiser Aluminum and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Playtika Holding.
Diversification Opportunities for Kaiser Aluminum and Playtika Holding
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kaiser and Playtika is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Playtika Holding go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Playtika Holding
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 1.06 times more return on investment than Playtika Holding. However, Kaiser Aluminum is 1.06 times more volatile than Playtika Holding Corp. It trades about 0.04 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.01 per unit of risk. If you would invest 6,492 in Kaiser Aluminum on August 31, 2024 and sell it today you would earn a total of 1,636 from holding Kaiser Aluminum or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. Playtika Holding Corp
Performance |
| Timeline |
| Kaiser Aluminum |
| Playtika Holding Corp |
Kaiser Aluminum and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Playtika Holding
The main advantage of trading using opposite Kaiser Aluminum and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Kaiser Aluminum vs. RLJ Lodging Trust | Kaiser Aluminum vs. Aquagold International | Kaiser Aluminum vs. Stepstone Group | Kaiser Aluminum vs. Morningstar Unconstrained Allocation |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world |