Correlation Analysis Between Visa and Alcoa

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

Visa Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Visa is expected to generate 0.4 times more return on investment than Alcoa. However, Visa is 2.47 times less risky than Alcoa. It trades about 0.25 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.08 per unit of risk. If you would invest  12,969  in Visa on May 26, 2018 and sell it today you would earn a total of  564.00  from holding Visa or generate 4.35% return on investment over 30 days.

Pair Corralation between Visa and Alcoa

-0.28
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Visa 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 Visa 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 Visa i.e. Visa and Alcoa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Visa  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.
Alcoa  
0 

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

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Alphabet
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ExchangeNASDAQ
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