This module allows you to analyze existing cross correlation between Reliance Steel Aluminum Co and Alcoa Corporation. You can compare the effects of market volatilities on Reliance Steel 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 Reliance Steel with a short position of Alcoa. See also your portfolio center
. Please also check ongoing floating volatility patterns of Reliance Steel
Reliance Steel Aluminum Co vs Alcoa Corp.
Allowing for the 30-days total investment horizon, Reliance Steel Aluminum Co is expected to generate 0.86 times more return on investment than Alcoa. However, Reliance Steel Aluminum Co is 1.17 times less risky than Alcoa. It trades about 0.02 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.06 per unit of risk. If you would invest 7,558 in Reliance Steel Aluminum Co on September 20, 2017 and sell it today you would earn a total of 37 from holding Reliance Steel Aluminum Co or generate 0.49% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Reliance Steel Aluminum Co and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Reliance Steel 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 Reliance Steel Aluminum Co 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 Reliance Steel i.e. Reliance Steel and Alcoa go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Reliance Steel Aluminum Co are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.