Correlation Analysis Between Coinbase Bitcoin and Alcoa

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

Comparative Performance

Coinbase Bitcoin USD  

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively weak forward-looking signals, Coinbase Bitcoin reported solid returns over the last few months and may actually be approaching a breakup point.

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 unsteady 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.

Coinbase Bitcoin and Alcoa Volatility Contrast

Coinbase Bitcoin USD  vs.  Alcoa Corp.

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 0.16 times more return on investment than Alcoa. However, Coinbase Bitcoin USD is 6.12 times less risky than Alcoa. It trades about 0.71 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.09 per unit of risk. If you would invest  828,301  in Coinbase Bitcoin USD on September 14, 2019 and sell it today you would earn a total of  5,699  from holding Coinbase Bitcoin USD or generate 0.69% return on investment over 30 days.

Pair Corralation between Coinbase Bitcoin and Alcoa

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Coinbase Bitcoin and Alcoa

Coinbase Bitcoin USD diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Coinbase Bitcoin 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 Coinbase Bitcoin USD 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 Coinbase Bitcoin i.e. Coinbase Bitcoin and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.