Correlation Between Repligen and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both Repligen 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 Repligen and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Kaiser Aluminum, you can compare the effects of market volatilities on Repligen 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 Repligen with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Kaiser Aluminum.
Diversification Opportunities for Repligen and Kaiser Aluminum
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Repligen and Kaiser is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and Repligen 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 Repligen 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 Repligen i.e., Repligen and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between Repligen and Kaiser Aluminum
Given the investment horizon of 90 days Repligen is expected to generate 4.64 times less return on investment than Kaiser Aluminum. In addition to that, Repligen is 1.2 times more volatile than Kaiser Aluminum. It trades about 0.05 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.29 per unit of volatility. If you would invest 6,678 in Kaiser Aluminum on August 24, 2024 and sell it today you would earn a total of 1,611 from holding Kaiser Aluminum or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Kaiser Aluminum
Performance |
| Timeline |
| Repligen |
| Kaiser Aluminum |
Repligen and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Kaiser Aluminum
The main advantage of trading using opposite Repligen and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Kaiser Aluminum vs. Eshallgo Class A | Kaiser Aluminum vs. Amtech Systems | Kaiser Aluminum vs. Gold Fields Ltd | Kaiser Aluminum vs. Aegean Airlines SA |
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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