Correlation Between WELLTOWER and Kaiser Aluminum
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By analyzing existing cross correlation between WELLTOWER INC and Kaiser Aluminum, you can compare the effects of market volatilities on WELLTOWER 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 WELLTOWER with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of WELLTOWER and Kaiser Aluminum.
Diversification Opportunities for WELLTOWER and Kaiser Aluminum
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WELLTOWER and Kaiser is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding WELLTOWER INC and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and WELLTOWER 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 WELLTOWER 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 WELLTOWER i.e., WELLTOWER and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between WELLTOWER and Kaiser Aluminum
Assuming the 90 days trading horizon WELLTOWER is expected to generate 3.69 times less return on investment than Kaiser Aluminum. But when comparing it to its historical volatility, WELLTOWER INC is 5.2 times less risky than Kaiser Aluminum. It trades about 0.05 of its potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,492 in Kaiser Aluminum on August 31, 2024 and sell it today you would earn a total of 1,636 from holding Kaiser Aluminum or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
WELLTOWER INC vs. Kaiser Aluminum
Performance |
| Timeline |
| WELLTOWER INC |
| Kaiser Aluminum |
WELLTOWER and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WELLTOWER and Kaiser Aluminum
The main advantage of trading using opposite WELLTOWER and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WELLTOWER 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.| WELLTOWER vs. Dennys Corp | WELLTOWER vs. Park Hotels Resorts | WELLTOWER vs. Cardinal Health | WELLTOWER vs. Olympic Steel |
| Kaiser Aluminum vs. RLJ Lodging Trust | Kaiser Aluminum vs. Aquagold International | Kaiser Aluminum vs. Stepstone Group | Kaiser Aluminum vs. Morningstar Unconstrained Allocation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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