Correlation Analysis Between Apple and Alcoa

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

Apple  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
Alcoa  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Alcoa sustained solid returns over the last few months and may actually be approaching a breakup point.

Apple and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.45 times more return on investment than Alcoa. However, Apple is 2.22 times less risky than Alcoa. It trades about 0.26 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.07 per unit of risk. If you would invest  21,264  in Apple on October 20, 2019 and sell it today you would earn a total of  5,365  from holding Apple or generate 25.23% return on investment over 30 days.

Pair Corralation between Apple and Alcoa

0.6
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and Alcoa

Apple Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Apple 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 Apple 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 Apple i.e. Apple and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. drill down to check world indexes.


 
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