Correlation Between Kaiser Aluminum and GENERAL
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By analyzing existing cross correlation between Kaiser Aluminum and GENERAL ELEC CAP, you can compare the effects of market volatilities on Kaiser Aluminum and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and GENERAL.
Diversification Opportunities for Kaiser Aluminum and GENERAL
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaiser and GENERAL is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and GENERAL go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and GENERAL
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 2.57 times more return on investment than GENERAL. However, Kaiser Aluminum is 2.57 times more volatile than GENERAL ELEC CAP. It trades about 0.19 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.14 per unit of risk. If you would invest 7,607 in Kaiser Aluminum on August 27, 2024 and sell it today you would earn a total of 771.00 from holding Kaiser Aluminum or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Kaiser Aluminum vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Kaiser Aluminum |
| GENERAL ELEC CAP |
Kaiser Aluminum and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and GENERAL
The main advantage of trading using opposite Kaiser Aluminum and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| GENERAL vs. Getty Realty | GENERAL vs. Century Aluminum | GENERAL vs. Maanshan Iron Steel | GENERAL vs. Kaiser Aluminum |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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