Correlation Analysis Between Alcoa and Apple |
This module allows you to analyze existing cross correlation between Alcoa Corporation and Apple. You can compare the effects of market volatilities on Alcoa and Apple 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 Alcoa with a short position of Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and Apple.
| Horizon | 30 Days Login to change |
| Symbols | vs |
Comparative Performance
| Alcoa |
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 fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
| Apple |
Risk-Adjusted Performance
Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Apple is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.
Alcoa and Apple Volatility Contrast
Alcoa Corp. vs. Apple Inc
Pair Volatility
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the Apple. In addition to that, Alcoa is 1.32 times more volatile than Apple. It trades about -0.19 of its total potential returns per unit of risk. Apple is currently generating about -0.06 per unit of volatility. If you would invest 18,874 in Apple on April 24, 2019 and sell it today you would lose (855.00) from holding Apple or give up 4.53% of portfolio value over 30 days.
Pair Corralation between Alcoa and Apple
0.29
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification Opportunities for Alcoa and Apple
Modest diversification
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple and Alcoa 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 Alcoa Corporation are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple has no effect on the direction of Alcoa i.e. Alcoa and Apple go up and down completely randomly.
Alcoa Corporation
Pair trading matchups for Alcoa
Apple
Pair trading matchups for Apple
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.
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