Correlation Between Vastned Retail and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and Kaiser Aluminum, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Kaiser Aluminum.
Diversification Opportunities for Vastned Retail and Kaiser Aluminum
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vastned and Kaiser is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between Vastned Retail and Kaiser Aluminum
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.35 times more return on investment than Kaiser Aluminum. However, Vastned Retail NV is 2.84 times less risky than Kaiser Aluminum. It trades about -0.11 of its potential returns per unit of risk. Kaiser Aluminum is currently generating about -0.12 per unit of risk. If you would invest 2,233 in Vastned Retail NV on September 13, 2024 and sell it today you would lose (48.00) from holding Vastned Retail NV or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Kaiser Aluminum
Performance |
| Timeline |
| Vastned Retail NV |
| Kaiser Aluminum |
Vastned Retail and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Kaiser Aluminum
The main advantage of trading using opposite Vastned Retail and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. Guidewire Software | Vastned Retail vs. Evolution Mining Limited | Vastned Retail vs. TAL Education Group | Vastned Retail vs. MAGIC SOFTWARE ENTR |
| Kaiser Aluminum vs. Norsk Hydro ASA | Kaiser Aluminum vs. Aluminum of | Kaiser Aluminum vs. Superior Plus Corp | Kaiser Aluminum vs. SIVERS SEMICONDUCTORS AB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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