Correlation Between Kaiser Aluminum and TRAVELERS
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By analyzing existing cross correlation between Kaiser Aluminum and TRAVELERS INC 46, you can compare the effects of market volatilities on Kaiser Aluminum and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and TRAVELERS.
Diversification Opportunities for Kaiser Aluminum and TRAVELERS
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaiser and TRAVELERS is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and TRAVELERS INC 46 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 46 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 46 has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and TRAVELERS go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and TRAVELERS
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 2.3 times more return on investment than TRAVELERS. However, Kaiser Aluminum is 2.3 times more volatile than TRAVELERS INC 46. It trades about 0.11 of its potential returns per unit of risk. TRAVELERS INC 46 is currently generating about -0.02 per unit of risk. If you would invest 6,958 in Kaiser Aluminum on September 2, 2024 and sell it today you would earn a total of 1,170 from holding Kaiser Aluminum or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 64.06% |
| Values | Daily Returns |
Kaiser Aluminum vs. TRAVELERS INC 46
Performance |
| Timeline |
| Kaiser Aluminum |
| TRAVELERS INC 46 |
Kaiser Aluminum and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and TRAVELERS
The main advantage of trading using opposite Kaiser Aluminum and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. American Express | TRAVELERS vs. Chevron 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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