Correlation Between Kaiser Aluminum and WALMART
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By analyzing existing cross correlation between Kaiser Aluminum and WALMART INC 65, you can compare the effects of market volatilities on Kaiser Aluminum and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and WALMART.
Diversification Opportunities for Kaiser Aluminum and WALMART
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kaiser and WALMART is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and WALMART INC 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 65 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 65 has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and WALMART go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and WALMART
Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 3.57 times more return on investment than WALMART. However, Kaiser Aluminum is 3.57 times more volatile than WALMART INC 65. It trades about 0.03 of its potential returns per unit of risk. WALMART INC 65 is currently generating about 0.09 per unit of risk. If you would invest 7,004 in Kaiser Aluminum on November 28, 2024 and sell it today you would earn a total of 78.00 from holding Kaiser Aluminum or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kaiser Aluminum vs. WALMART INC 65
Performance |
| Timeline |
| Kaiser Aluminum |
| WALMART INC 65 |
Kaiser Aluminum and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and WALMART
The main advantage of trading using opposite Kaiser Aluminum and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| WALMART vs. Tarsus Pharmaceuticals | WALMART vs. EastGroup Properties | WALMART vs. Regeneron Pharmaceuticals | WALMART vs. Catalyst Pharmaceuticals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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