Correlation Analysis Between Apple and Alcoa

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

Apple  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
Alcoa  
00

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 latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Apple and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Apple  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.46 times more return on investment than Alcoa. However, Apple is 2.2 times less risky than Alcoa. It trades about 0.29 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.04 per unit of risk. If you would invest  21,990  in Apple on November 14, 2019 and sell it today you would earn a total of  5,525  from holding Apple or generate 25.13% return on investment over 30 days.

Pair Corralation between Apple and Alcoa

0.07
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for Apple and Alcoa

Apple diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Apple 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 Apple are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Apple i.e. Apple and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
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