Correlation Between Kaiser Aluminum and Myriad Uranium

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

By analyzing existing cross correlation between Kaiser Aluminum and Myriad Uranium Corp, you can compare the effects of market volatilities on Kaiser Aluminum and Myriad Uranium 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 Myriad Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and Myriad Uranium.

Diversification Opportunities for Kaiser Aluminum and Myriad Uranium

0.23

Correlation Coefficient

Kaiser Aluminum  Myriad Uranium

Modest diversification

The 3 months correlation between Kaiser and Myriad is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum and Myriad Uranium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myriad Uranium Corp 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 are associated (or correlated) with Myriad Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myriad Uranium Corp has no effect on the direction of Kaiser Aluminum i.e., Kaiser Aluminum and Myriad Uranium go up and down completely randomly.

Pair Corralation between Kaiser Aluminum and Myriad Uranium

Given the investment horizon of 90 days Kaiser Aluminum is expected to generate 0.43 times more return on investment than Myriad Uranium. However, Kaiser Aluminum is 2.31 times less risky than Myriad Uranium. It trades about -0.08 of its potential returns per unit of risk. Myriad Uranium Corp is currently generating about -0.11 per unit of risk. If you would invest  6,926  in Kaiser Aluminum on December 28, 2024 and sell it today you would lose (717.00) from holding Kaiser Aluminum or give up 10.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Kaiser Aluminum  vs.  Myriad Uranium Corp

Kaiser Aluminum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kaiser Aluminum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Myriad Uranium Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Myriad Uranium Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Kaiser Aluminum and Myriad Uranium

The main advantage of trading using opposite Kaiser Aluminum and Myriad Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum position performs unexpectedly, Myriad Uranium 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 Myriad Uranium will offset losses from the drop in Myriad Uranium's long position.

The idea behind Kaiser Aluminum and Myriad Uranium Corp 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.