Correlation Analysis Between Kaiser Aluminum and Alcoa

This module allows you to analyze existing cross correlation between Kaiser Aluminum Corporation and Alcoa Corporation. You can compare the effects of market volatilities on Kaiser Aluminum and Alcoa 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 Kaiser Aluminum with a short position of Alcoa. See also your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Alcoa.
Horizon     30 Days    Login   to change
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Comparative Performance

Kaiser Aluminum  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kaiser Aluminum Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, Kaiser Aluminum is not utilizing all of its potentials. The current stock price uproar, may contribute to short horizon losses for the leadership.
Alcoa  
00

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The prevalent stock price disturbance, may contribute to short term losses for the investors.

Kaiser Aluminum and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Kaiser Aluminum Corp.  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Kaiser Aluminum Corporation is expected to generate 0.55 times more return on investment than Alcoa. However, Kaiser Aluminum Corporation is 1.8 times less risky than Alcoa. It trades about 0.04 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.01 per unit of risk. If you would invest  9,660  in Kaiser Aluminum Corporation on August 17, 2019 and sell it today you would earn a total of  301.00  from holding Kaiser Aluminum Corporation or generate 3.12% return on investment over 30 days.

Pair Corralation between Kaiser Aluminum and Alcoa

0.95
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Kaiser Aluminum and Alcoa

Kaiser Aluminum Corp. diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum Corp. and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Kaiser Aluminum 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 Kaiser Aluminum Corporation are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Kaiser Aluminum i.e. Kaiser Aluminum and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try ETF Directory module to find actively-traded exchange traded funds (etf) from around the world.


 
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