Correlation Analysis Between International Business and Alcoa

This module allows you to analyze existing cross correlation between International Business Machines Corporation 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
Symbolsvs

International Business Machine  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines Corporation is expected to generate 0.37 times more return on investment than Alcoa. However, International Business Machines Corporation is 2.7 times less risky than Alcoa. It trades about 0.26 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.03 per unit of risk. If you would invest  14,524  in International Business Machines Corporation on August 24, 2018 and sell it today you would earn a total of  611.00  from holding International Business Machines Corporation or generate 4.21% return on investment over 30 days.

Pair Corralation between International Business and Alcoa

-0.77
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy91.3%
ValuesDaily Returns

Diversification

Pay attention

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 Corporation 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.

Comparative Volatility

 Predicted Return Density 
      Returns 
International Business  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Alcoa  
1 

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.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1171.09

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