Correlation Between Kaiser Aluminum and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and YanGuFang International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kaiser Aluminum and YanGuFang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and YanGuFang International Group, you can compare the effects of market volatilities on Kaiser Aluminum and YanGuFang International 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 YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and YanGuFang International.
Diversification Opportunities for Kaiser Aluminum and YanGuFang International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaiser and YanGuFang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International 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 YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and YanGuFang International go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and YanGuFang International
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. YanGuFang International Group
Performance |
| Timeline |
| Kaiser Aluminum |
| YanGuFang International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kaiser Aluminum and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and YanGuFang International
The main advantage of trading using opposite Kaiser Aluminum and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International's long position.| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
| YanGuFang International vs. Molecular Partners AG | YanGuFang International vs. Sphere 3D Corp | YanGuFang International vs. FARO Technologies | YanGuFang International vs. Canada Goose 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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