Correlation Between American Environmental and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both American Environmental 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 American Environmental and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Environmental and Kaiser Aluminum, you can compare the effects of market volatilities on American Environmental 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 American Environmental with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Environmental and Kaiser Aluminum.
Diversification Opportunities for American Environmental and Kaiser Aluminum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Kaiser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Environmental and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and American Environmental 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 American Environmental 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 American Environmental i.e., American Environmental and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between American Environmental and Kaiser Aluminum
If you would invest 6,953 in Kaiser Aluminum on November 2, 2024 and sell it today you would earn a total of 162.00 from holding Kaiser Aluminum or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Environmental vs. Kaiser Aluminum
Performance |
| Timeline |
| American Environmental |
| Kaiser Aluminum |
American Environmental and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Environmental and Kaiser Aluminum
The main advantage of trading using opposite American Environmental and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Environmental 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.| American Environmental vs. Radcom | American Environmental vs. Senmiao Technology | American Environmental vs. Arrow Electronics | American Environmental vs. JBG SMITH Properties |
| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |