Correlation Between Kaiser Aluminum and Vestas Wind
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By analyzing existing cross correlation between Kaiser Aluminum and Vestas Wind Systems, you can compare the effects of market volatilities on Kaiser Aluminum and Vestas Wind 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 Vestas Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Vestas Wind.
Diversification Opportunities for Kaiser Aluminum and Vestas Wind
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaiser and Vestas is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Vestas Wind Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestas Wind Systems 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 Vestas Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestas Wind Systems has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Vestas Wind go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and Vestas Wind
Assuming the 90 days trading horizon Kaiser Aluminum is expected to generate 1.11 times more return on investment than Vestas Wind. However, Kaiser Aluminum is 1.11 times more volatile than Vestas Wind Systems. It trades about 0.02 of its potential returns per unit of risk. Vestas Wind Systems is currently generating about -0.04 per unit of risk. If you would invest 6,676 in Kaiser Aluminum on September 12, 2024 and sell it today you would earn a total of 674.00 from holding Kaiser Aluminum or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. Vestas Wind Systems
Performance |
| Timeline |
| Kaiser Aluminum |
| Vestas Wind Systems |
Kaiser Aluminum and Vestas Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and Vestas Wind
The main advantage of trading using opposite Kaiser Aluminum and Vestas Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Vestas Wind 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 Vestas Wind will offset losses from the drop in Vestas Wind's long position.| Kaiser Aluminum vs. Tencent Music Entertainment | Kaiser Aluminum vs. Vastned Retail NV | Kaiser Aluminum vs. MARKET VECTR RETAIL | Kaiser Aluminum vs. PLAYSTUDIOS A DL 0001 |
| Vestas Wind vs. FIREWEED METALS P | Vestas Wind vs. ARDAGH METAL PACDL 0001 | Vestas Wind vs. Kaiser Aluminum | Vestas Wind vs. Jacquet Metal Service |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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