Correlation Analysis Between Alcoa and Chevron

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


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 November 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

Alcoa and Chevron Volatility Contrast

 Predicted Return Density 

Alcoa Corp.  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the Chevron. In addition to that, Alcoa is 2.41 times more volatile than Chevron Corporation. It trades about -0.07 of its total potential returns per unit of risk. Chevron Corporation is currently generating about -0.07 per unit of volatility. If you would invest  12,341  in Chevron Corporation on September 16, 2019 and sell it today you would lose (734.00)  from holding Chevron Corporation or give up 5.95% of portfolio value over 30 days.

Pair Corralation between Alcoa and Chevron

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Alcoa and Chevron

Alcoa Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Alcoa i.e. Alcoa and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.