Correlation Analysis Between Alcoa and International Business

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

Alcoa Corp.  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the International Business. In addition to that, Alcoa is 2.9 times more volatile than International Business Machines Corporation. It trades about -0.11 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.09 per unit of volatility. If you would invest  14,669  in International Business Machines Corporation on August 27, 2018 and sell it today you would earn a total of  222.00  from holding International Business Machines Corporation or generate 1.51% return on investment over 30 days.

Pair Corralation between Alcoa and International Business

-0.78
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Alcoa i.e. Alcoa and International Business go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
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.
International Business  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 6 (%) 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
$1166.09

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