Correlation Analysis Between Citigroup and Alcoa

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

Comparative Performance


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 weak basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2020.

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.

Citigroup and Alcoa Volatility Contrast

 Predicted Return Density 

Citigroup Inc  vs.  Alcoa Corp.

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Citigroup is expected to generate 0.49 times more return on investment than Alcoa. However, Citigroup is 2.05 times less risky than Alcoa. It trades about 0.11 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.04 per unit of risk. If you would invest  6,983  in Citigroup on November 14, 2019 and sell it today you would earn a total of  656.00  from holding Citigroup or generate 9.39% return on investment over 30 days.

Pair Corralation between Citigroup and Alcoa

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Citigroup and Alcoa

Citigroup Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Manager module to state of the art portfolio manager to monitor and improve performance of your invested capital.