This module allows you to analyze existing cross correlation between International Business Machines Corporation 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|
Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain 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.
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 June 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
International Business and Alcoa Volatility Contrast
Predicted Return Density
International Business Machine vs. Alcoa Corp.
Considering 30-days investment horizon, International Business Machines Corporation is expected to generate 0.56 times more return on investment than Alcoa. However, International Business Machines Corporation is 1.79 times less risky than Alcoa. It trades about -0.1 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.19 per unit of risk. If you would invest 13,918 in International Business Machines Corporation on April 24, 2019 and sell it today you would lose (753.00) from holding International Business Machines Corporation or give up 5.41% of portfolio value over 30 days.
Pair Corralation between International Business and Alcoa
|Time Period||2 Months [change]|
Diversification Opportunities for International Business and Alcoa
Very poor diversification
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 Corporation 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.