This module allows you to analyze existing cross correlation between DOW and Alcoa Corporation. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Alcoa. See also your portfolio center
. Please also check ongoing floating volatility patterns of DOW
DOW vs Alcoa Corp.
If you would invest 2,496,475 in DOW on February 18, 2018 and sell it today you would lose (1,824) from holding DOW or give up 0.07% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding DOW and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and DOW 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 DOW 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 DOW i.e. DOW and Alcoa go up and down completely randomly.