This module allows you to analyze existing cross correlation between Alcoa Corporation and Macys Inc. You can compare the effects of market volatilities on Alcoa and Macys 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 Macys. See also your portfolio center
. Please also check ongoing floating volatility patterns of Alcoa
Alcoa Corp. vs Macys Inc
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to generate 0.18 times more return on investment than Macys. However, Alcoa Corporation is 5.49 times less risky than Macys. It trades about 0.2 of its potential returns per unit of risk. Macys Inc is currently generating about 0.02 per unit of risk. If you would invest 4,529 in Alcoa Corporation on September 23, 2017 and sell it today you would earn a total of 264 from holding Alcoa Corporation or generate 5.83% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Alcoa i.e. Alcoa and Macys go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.