Correlation Between PLAYSTUDIOS and Kaiser Aluminum

Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS 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 PLAYSTUDIOS and Kaiser Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PLAYSTUDIOS A DL 0001 and Kaiser Aluminum, you can compare the effects of market volatilities on PLAYSTUDIOS 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 PLAYSTUDIOS with a short position of Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and Kaiser Aluminum.

Diversification Opportunities for PLAYSTUDIOS and Kaiser Aluminum

0.2

Correlation Coefficient

PLAYSTUDIOS  Kaiser Aluminum

Modest diversification

The 3 months correlation between PLAYSTUDIOS and Kaiser is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum and PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 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 PLAYSTUDIOS i.e., PLAYSTUDIOS and Kaiser Aluminum go up and down completely randomly.

Pair Corralation between PLAYSTUDIOS and Kaiser Aluminum

Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to under-perform the Kaiser Aluminum. In addition to that, PLAYSTUDIOS is 1.27 times more volatile than Kaiser Aluminum. It trades about -0.03 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.01 per unit of volatility. If you would invest  7,389  in Kaiser Aluminum on October 21, 2024 and sell it today you would lose (189.00) from holding Kaiser Aluminum or give up 2.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PLAYSTUDIOS A DL 0001  vs.  Kaiser Aluminum

PLAYSTUDIOS A DL

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PLAYSTUDIOS A DL 0001 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, PLAYSTUDIOS reported solid returns over the last few months and may actually be approaching a breakup point.

Kaiser Aluminum

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kaiser Aluminum are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kaiser Aluminum may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with PLAYSTUDIOS and Kaiser Aluminum

The main advantage of trading using opposite PLAYSTUDIOS and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYSTUDIOS 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.

The idea behind PLAYSTUDIOS A DL 0001 and Kaiser Aluminum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..