Correlation Between Kaiser Aluminum and Siam City
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and Siam City 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 Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and Siam City Cement, you can compare the effects of market volatilities on Kaiser Aluminum and Siam City 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 Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Siam City.
Diversification Opportunities for Kaiser Aluminum and Siam City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaiser and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement 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 Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Siam City go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Siam City
If you would invest 330.00 in Siam City Cement on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Siam City Cement or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. Siam City Cement
Performance |
| Timeline |
| Kaiser Aluminum |
| Siam City Cement |
Kaiser Aluminum and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Siam City
The main advantage of trading using opposite Kaiser Aluminum and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Siam City 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 Siam City will offset losses from the drop in Siam City's long position.| Kaiser Aluminum vs. Sligro Food Group | Kaiser Aluminum vs. FitLife Brands, Common | Kaiser Aluminum vs. Aeye Inc | Kaiser Aluminum vs. Ep Emerging Markets |
| Siam City vs. Aegon NV ADR | Siam City vs. AmTrust Financial Services | Siam City vs. Western Union Co | Siam City vs. BCB Bancorp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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