Correlation Between Pinstripes Holdings and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings 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 Pinstripes Holdings and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and Kaiser Aluminum, you can compare the effects of market volatilities on Pinstripes Holdings 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 Pinstripes Holdings with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Kaiser Aluminum.
Diversification Opportunities for Pinstripes Holdings and Kaiser Aluminum
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinstripes and Kaiser is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and Pinstripes Holdings 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 Pinstripes Holdings 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 Pinstripes Holdings i.e., Pinstripes Holdings and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Kaiser Aluminum
Given the investment horizon of 90 days Pinstripes Holdings is expected to under-perform the Kaiser Aluminum. In addition to that, Pinstripes Holdings is 3.52 times more volatile than Kaiser Aluminum. It trades about -0.14 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.11 per unit of volatility. If you would invest 6,958 in Kaiser Aluminum on September 3, 2024 and sell it today you would earn a total of 1,170 from holding Kaiser Aluminum or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Kaiser Aluminum
Performance |
| Timeline |
| Pinstripes Holdings |
| Kaiser Aluminum |
Pinstripes Holdings and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Kaiser Aluminum
The main advantage of trading using opposite Pinstripes Holdings and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings 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.| Pinstripes Holdings vs. Kaiser Aluminum | Pinstripes Holdings vs. Steven Madden | Pinstripes Holdings vs. Burlington Stores | Pinstripes Holdings vs. Shoe Carnival |
| Kaiser Aluminum vs. SPACE | Kaiser Aluminum vs. Ampleforth | Kaiser Aluminum vs. ionet | Kaiser Aluminum vs. Memecoin |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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