Correlation Analysis Between Century Aluminum and Alcoa

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

Century Aluminum  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Century Aluminum Company are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Inspite fairly strong basic indicators, Century Aluminum is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
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 somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The prevalent stock price disturbance, may contribute to short term losses for the investors.

Century Aluminum and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Century Aluminum Company  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Century Aluminum Company is expected to generate 1.2 times more return on investment than Alcoa. However, Century Aluminum is 1.2 times more volatile than Alcoa Corporation. It trades about 0.02 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.0 per unit of risk. If you would invest  693.00  in Century Aluminum Company on August 20, 2019 and sell it today you would earn a total of  9.00  from holding Century Aluminum Company or generate 1.3% return on investment over 30 days.

Pair Corralation between Century Aluminum and Alcoa

0.86
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Century Aluminum and Alcoa

Century Aluminum Company diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Century Aluminum Company and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Century Aluminum 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 Century Aluminum Company 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 Century Aluminum i.e. Century Aluminum and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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