Correlation Analysis Between Alcoa and Citigroup

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.
Horizon     30 Days    Login   to change
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Comparative Performance


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 recent stock price disturbance, may contribute to short term losses for the investors.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2020.

Alcoa and Citigroup Volatility Contrast

 Predicted Return Density 

Alcoa Corp.  vs.  Citigroup Inc

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa is expected to generate 57.96 times less return on investment than Citigroup. In addition to that, Alcoa is 2.14 times more volatile than Citigroup. It trades about 0.0 of its total potential returns per unit of risk. Citigroup is currently generating about 0.11 per unit of volatility. If you would invest  6,879  in Citigroup on November 6, 2019 and sell it today you would earn a total of  592.00  from holding Citigroup or generate 8.61% return on investment over 30 days.

Pair Corralation between Alcoa and Citigroup

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Alcoa and Citigroup

Alcoa Corp. diversification synergy

Very weak diversification

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.
See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.