This module allows you to analyze existing cross correlation between Alcoa Corporation and Citigroup. You can compare the effects of market volatilities on Alcoa and Citigroup 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 Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and Citigroup.
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the Citigroup. In addition to that, Alcoa is 2.24 times more volatile than Citigroup. It trades about -0.16 of its total potential returns per unit of risk. Citigroup is currently generating about 0.1 per unit of volatility. If you would invest 6,720 in Citigroup on June 22, 2018 and sell it today you would earn a total of 202.00 from holding Citigroup or generate 3.01% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Alcoa i.e. Alcoa and Citigroup go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.