Correlation Between Kaiser Aluminum and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and Cleantech Power 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 Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and Cleantech Power Corp, you can compare the effects of market volatilities on Kaiser Aluminum and Cleantech Power 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 Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Cleantech Power.
Diversification Opportunities for Kaiser Aluminum and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaiser and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power 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 Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Cleantech Power go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Cleantech Power
If you would invest 7,004 in Kaiser Aluminum on November 28, 2024 and sell it today you would earn a total of 78.00 from holding Kaiser Aluminum or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kaiser Aluminum vs. Cleantech Power Corp
Performance |
| Timeline |
| Kaiser Aluminum |
| Cleantech Power Corp |
Kaiser Aluminum and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Cleantech Power
The main advantage of trading using opposite Kaiser Aluminum and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Cleantech Power 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 Cleantech Power will offset losses from the drop in Cleantech Power's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| Cleantech Power vs. Lendlease Global Commercial | Cleantech Power vs. Broadstone Net Lease | Cleantech Power vs. Hertz Global Hldgs | Cleantech Power vs. Aterian |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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