Correlation Analysis Between Alcoa and Aluminum

This module allows you to analyze existing cross correlation between Alcoa Corporation and Aluminum Corporation of China L. You can compare the effects of market volatilities on Alcoa and 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 Alcoa with a short position of Aluminum. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and Aluminum.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Alcoa  
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Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The prevalent stock price disturbance, may contribute to short term losses for the investors.
Aluminum of China  
00

Risk-Adjusted Performance

Over the last 30 days Aluminum Corporation of China L has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Aluminum is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholder.

Alcoa and Aluminum Volatility Contrast

 Predicted Return Density 
      Returns 

Alcoa Corp.  vs.  Aluminum Corp. of China L

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to generate 1.41 times more return on investment than Aluminum. However, Alcoa is 1.41 times more volatile than Aluminum Corporation of China L. It trades about 0.0 of its potential returns per unit of risk. Aluminum Corporation of China L is currently generating about -0.03 per unit of risk. If you would invest  2,260  in Alcoa Corporation on August 20, 2019 and sell it today you would lose (63.00)  from holding Alcoa Corporation or give up 2.79% of portfolio value over 30 days.

Pair Corralation between Alcoa and Aluminum

0.88
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Alcoa and Aluminum

Alcoa Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Aluminum Corp. of China L in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Aluminum of China and Alcoa 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 Alcoa Corporation are associated (or correlated) with Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum of China has no effect on the direction of Alcoa i.e. Alcoa and Aluminum go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.


 
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