Correlation Between 548661EG8 and Kaiser Aluminum
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By analyzing existing cross correlation between LOW 335 01 APR 27 and Kaiser Aluminum, you can compare the effects of market volatilities on 548661EG8 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 548661EG8 with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of 548661EG8 and Kaiser Aluminum.
Diversification Opportunities for 548661EG8 and Kaiser Aluminum
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 548661EG8 and Kaiser is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding LOW 335 01 APR 27 and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and 548661EG8 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 LOW 335 01 APR 27 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 548661EG8 i.e., 548661EG8 and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between 548661EG8 and Kaiser Aluminum
Assuming the 90 days trading horizon LOW 335 01 APR 27 is expected to under-perform the Kaiser Aluminum. But the bond apears to be less risky and, when comparing its historical volatility, LOW 335 01 APR 27 is 2.2 times less risky than Kaiser Aluminum. The bond trades about -0.01 of its potential returns per unit of risk. The Kaiser Aluminum is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,039 in Kaiser Aluminum on October 25, 2024 and sell it today you would earn a total of 66.00 from holding Kaiser Aluminum or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
LOW 335 01 APR 27 vs. Kaiser Aluminum
Performance |
| Timeline |
| LOW 335 01 |
| Kaiser Aluminum |
548661EG8 and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 548661EG8 and Kaiser Aluminum
The main advantage of trading using opposite 548661EG8 and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 548661EG8 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.| 548661EG8 vs. Games Workshop Group | 548661EG8 vs. Arrow Electronics | 548661EG8 vs. Hochschild Mining PLC | 548661EG8 vs. NanoTech Gaming |
| Kaiser Aluminum vs. Bank of America | Kaiser Aluminum vs. RLJ Lodging Trust | Kaiser Aluminum vs. PennyMac Finl Svcs | Kaiser Aluminum vs. Brandywine Realty Trust |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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