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 and Alcoa.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 0.26 times more return on investment than Alcoa. However, DOW is 3.83 times less risky than Alcoa. It trades about 0.42 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.04 per unit of risk. If you would invest 2,340,947 in DOW on November 14, 2017 and sell it today you would earn a total of 109,919 from holding DOW or generate 4.7% return on investment over 30 days.