Correlation Between Kaiser Aluminum and SavWatt USA
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and SavWatt USA 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 SavWatt USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and SavWatt USA, you can compare the effects of market volatilities on Kaiser Aluminum and SavWatt USA 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 SavWatt USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and SavWatt USA.
Diversification Opportunities for Kaiser Aluminum and SavWatt USA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaiser and SavWatt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and SavWatt USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SavWatt USA 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 SavWatt USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SavWatt USA has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and SavWatt USA go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and SavWatt USA
If you would invest 6,018 in Kaiser Aluminum on December 4, 2024 and sell it today you would earn a total of 787.50 from holding Kaiser Aluminum or generate 13.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. SavWatt USA
Performance |
| Timeline |
| Kaiser Aluminum |
| SavWatt USA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kaiser Aluminum and SavWatt USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and SavWatt USA
The main advantage of trading using opposite Kaiser Aluminum and SavWatt USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, SavWatt USA 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 SavWatt USA will offset losses from the drop in SavWatt USA's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| SavWatt USA vs. The Coca Cola | SavWatt USA vs. NETGEAR | SavWatt USA vs. BCE Inc | SavWatt USA vs. Stratasys |
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.
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