Correlation Between Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4, you can compare the effects of market volatilities on Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/.
Diversification Opportunities for Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaiser and PROSIEBENSAT1 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROSIEBENSAT1 MEDIADR4/ has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/ go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/
Assuming the 90 days trading horizon Kaiser Aluminum is expected to generate 12.52 times less return on investment than PROSIEBENSAT1 MEDIADR4/. But when comparing it to its historical volatility, Kaiser Aluminum is 1.37 times less risky than PROSIEBENSAT1 MEDIADR4/. It trades about 0.02 of its potential returns per unit of risk. PROSIEBENSAT1 MEDIADR4 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 125.00 in PROSIEBENSAT1 MEDIADR4 on November 5, 2024 and sell it today you would earn a total of 10.00 from holding PROSIEBENSAT1 MEDIADR4 or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. PROSIEBENSAT1 MEDIADR4
Performance |
| Timeline |
| Kaiser Aluminum |
| PROSIEBENSAT1 MEDIADR4/ |
Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/
The main advantage of trading using opposite Kaiser Aluminum and PROSIEBENSAT1 MEDIADR4/ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ will offset losses from the drop in PROSIEBENSAT1 MEDIADR4/'s long position.| Kaiser Aluminum vs. G III APPAREL GROUP | Kaiser Aluminum vs. USWE SPORTS AB | Kaiser Aluminum vs. Yuexiu Transport Infrastructure | Kaiser Aluminum vs. TITANIUM TRANSPORTGROUP |
| PROSIEBENSAT1 MEDIADR4/ vs. Warner Music Group | PROSIEBENSAT1 MEDIADR4/ vs. PEPTONIC MEDICAL | PROSIEBENSAT1 MEDIADR4/ vs. CHRYSALIS INVESTMENTS LTD | PROSIEBENSAT1 MEDIADR4/ vs. UNIVMUSIC GRPADR050 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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