Correlation Between Kaiser Aluminum and STANLN
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By analyzing existing cross correlation between Kaiser Aluminum and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Kaiser Aluminum and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and STANLN.
Diversification Opportunities for Kaiser Aluminum and STANLN
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kaiser and STANLN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and STANLN go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and STANLN
Given the investment horizon of 90 days Kaiser Aluminum is expected to under-perform the STANLN. In addition to that, Kaiser Aluminum is 33.07 times more volatile than STANLN 32 17 APR 25. It trades about -0.32 of its total potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.65 per unit of volatility. If you would invest 9,930 in STANLN 32 17 APR 25 on October 9, 2024 and sell it today you would earn a total of 22.00 from holding STANLN 32 17 APR 25 or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 20.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| Kaiser Aluminum |
| STANLN 32 17 |
Kaiser Aluminum and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and STANLN
The main advantage of trading using opposite Kaiser Aluminum and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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