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 2.67 times less return on investment than Alcoa. But when comparing it to its historical volatility, DOW is 6.54 times less risky than Alcoa. It trades about 0.56 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,491 in Alcoa Corporation on September 16, 2017 and sell it today you would earn a total of 333 from holding Alcoa Corporation or generate 7.41% return on investment over 30 days.