Correlation Analysis Between Century Aluminum and Alcoa

Analyzing 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  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Century Aluminum Company are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak basic indicators, Century Aluminum may actually be approaching a critical reversion point that can send shares even higher in February 2020.
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 unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2020. The current disturbance may also be a sign of long term up-swing for the company 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 1.38 times more return on investment than Alcoa. However, Century Aluminum is 1.38 times more volatile than Alcoa Corporation. It trades about 0.04 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.14 per unit of risk. If you would invest  602.00  in Century Aluminum Company on December 24, 2019 and sell it today you would earn a total of  38.00  from holding Century Aluminum Company or generate 6.31% return on investment over 30 days.

Pair Corralation between Century Aluminum and Alcoa

0.21
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Century Aluminum and Alcoa

Century Aluminum Company diversification synergy

Modest 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.
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