Correlation Analysis Between International Business and Alcoa

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

International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The ongoing stock price chaos, may contribute to medium term losses for the stakeholders.
Alcoa  
11

Risk-Adjusted Performance

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

International Business and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines is expected to under-perform the Alcoa. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines is 2.48 times less risky than Alcoa. The stock trades about -0.09 of its potential returns per unit of risk. The Alcoa Corporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,030  in Alcoa Corporation on November 8, 2019 and sell it today you would earn a total of  30.00  from holding Alcoa Corporation or generate 1.48% return on investment over 30 days.

Pair Corralation between International Business and Alcoa

-0.04
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Alcoa

International Business Machine diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and International Business 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 International Business Machines 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 International Business i.e. International Business and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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