Correlation Analysis Between International Business and Alcoa

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

International Business  
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Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.
Alcoa  
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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 latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

International Business and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines is expected to generate 0.41 times more return on investment than Alcoa. However, International Business Machines is 2.41 times less risky than Alcoa. It trades about -0.1 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.05 per unit of risk. If you would invest  14,367  in International Business Machines on November 12, 2019 and sell it today you would lose (991.00)  from holding International Business Machines or give up 6.9% of portfolio value over 30 days.

Pair Corralation between International Business and Alcoa

0.0
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Alcoa

International Business Machine diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and International Business 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 International Business Machines 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 International Business i.e. International Business and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.


 
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