Correlation Between Aeye and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both Aeye and Kaiser Aluminum 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 Aeye and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and Kaiser Aluminum, you can compare the effects of market volatilities on Aeye and Kaiser Aluminum 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 Aeye with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Kaiser Aluminum.
Diversification Opportunities for Aeye and Kaiser Aluminum
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aeye and Kaiser is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and Aeye 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 Aeye Inc are associated (or correlated) with Kaiser Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Aluminum has no effect on the direction of Aeye i.e., Aeye and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between Aeye and Kaiser Aluminum
Given the investment horizon of 90 days Aeye is expected to generate 5.71 times less return on investment than Kaiser Aluminum. In addition to that, Aeye is 1.67 times more volatile than Kaiser Aluminum. It trades about 0.01 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.07 per unit of volatility. If you would invest 7,138 in Kaiser Aluminum on September 13, 2024 and sell it today you would earn a total of 547.00 from holding Kaiser Aluminum or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeye Inc vs. Kaiser Aluminum
Performance |
| Timeline |
| Aeye Inc |
| Kaiser Aluminum |
Aeye and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Kaiser Aluminum
The main advantage of trading using opposite Aeye and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, Kaiser Aluminum 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 Kaiser Aluminum will offset losses from the drop in Kaiser Aluminum's long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Aeva Technologies | Aeye vs. Quantumscape Corp |
| Kaiser Aluminum vs. Fortitude Gold Corp | Kaiser Aluminum vs. New Gold | Kaiser Aluminum vs. Galiano Gold | Kaiser Aluminum vs. GoldMining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |