Correlation Analysis Between Kaiser Aluminum and Alcoa

Analyzing 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  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kaiser Aluminum Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unfluctuating essential indicators, Kaiser Aluminum may actually be approaching a critical reversion point that can send shares even higher in February 2020.

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 latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Kaiser Aluminum and Alcoa Volatility Contrast

 Predicted Return Density 

Kaiser Aluminum Corp.  vs.  Alcoa Corp.

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Kaiser Aluminum Corporation is expected to generate 0.59 times more return on investment than Alcoa. However, Kaiser Aluminum Corporation is 1.71 times less risky than Alcoa. It trades about 0.08 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.07 per unit of risk. If you would invest  9,814  in Kaiser Aluminum Corporation on December 19, 2019 and sell it today you would earn a total of  680.00  from holding Kaiser Aluminum Corporation or generate 6.93% return on investment over 30 days.

Pair Corralation between Kaiser Aluminum and Alcoa

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Kaiser Aluminum and Alcoa

Kaiser Aluminum Corp. diversification synergy

Weak 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.