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  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2019.
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 fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Apple and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.64 times more return on investment than Alcoa. However, Apple is 1.56 times less risky than Alcoa. It trades about 0.09 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.16 per unit of risk. If you would invest  19,946  in Apple on July 20, 2019 and sell it today you would earn a total of  1,250  from holding Apple or generate 6.27% return on investment over 30 days.

Pair Corralation between Apple and Alcoa

0.26
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and Alcoa

Apple Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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