Correlation Analysis Between Alcoa and ATT

This module allows you to analyze existing cross correlation between Alcoa Corporation and ATT. You can compare the effects of market volatilities on Alcoa and ATT 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 ATT. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and ATT.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

Alcoa  
0

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
ATT  
0

Risk-Adjusted Performance

Over the last 30 days ATT has generated negative risk-adjusted returns adding no value to investors with long positions.

Alcoa and ATT Volatility Contrast

 Predicted Return Density 
      Returns 

Alcoa Corp.  vs.  ATT

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the ATT. In addition to that, Alcoa is 1.75 times more volatile than ATT. It trades about -0.22 of its total potential returns per unit of risk. ATT is currently generating about -0.08 per unit of volatility. If you would invest  3,250  in ATT on November 17, 2018 and sell it today you would lose (228.00)  from holding ATT or give up 7.02% of portfolio value over 30 days.

Pair Corralation between Alcoa and ATT

0.58
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alcoa and ATT

Alcoa Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and ATT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT has no effect on the direction of Alcoa i.e. Alcoa and ATT go up and down completely randomly.

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