Correlation Between Kaiser Aluminum and Scotts
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By analyzing existing cross correlation between Kaiser Aluminum and Scotts Miracle Gro 525, you can compare the effects of market volatilities on Kaiser Aluminum and Scotts 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 Scotts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Scotts.
Diversification Opportunities for Kaiser Aluminum and Scotts
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaiser and Scotts is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Scotts Miracle Gro 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotts Miracle Gro 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 Scotts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotts Miracle Gro has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Scotts go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Scotts
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 3.87 times more return on investment than Scotts. However, Kaiser Aluminum is 3.87 times more volatile than Scotts Miracle Gro 525. It trades about 0.05 of its potential returns per unit of risk. Scotts Miracle Gro 525 is currently generating about 0.02 per unit of risk. If you would invest 6,449 in Kaiser Aluminum on September 12, 2024 and sell it today you would earn a total of 1,475 from holding Kaiser Aluminum or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.34% |
| Values | Daily Returns |
Kaiser Aluminum vs. Scotts Miracle Gro 525
Performance |
| Timeline |
| Kaiser Aluminum |
| Scotts Miracle Gro |
Kaiser Aluminum and Scotts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Scotts
The main advantage of trading using opposite Kaiser Aluminum and Scotts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Scotts 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 Scotts will offset losses from the drop in Scotts' 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 |
| Scotts vs. AEP TEX INC | Scotts vs. US BANK NATIONAL | Scotts vs. Applied Blockchain | Scotts vs. BigBearai Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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