Correlation Between Alcoa Corp and EKAR
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and EKAR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alcoa Corp and EKAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and EKAR, you can compare the effects of market volatilities on Alcoa Corp and EKAR 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 Corp with a short position of EKAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and EKAR.
Diversification Opportunities for Alcoa Corp and EKAR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and EKAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and EKAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EKAR and Alcoa Corp 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 Corp are associated (or correlated) with EKAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EKAR has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and EKAR go up and down completely randomly.
Pair Corralation between Alcoa Corp and EKAR
If you would invest 3,402 in Alcoa Corp on February 1, 2024 and sell it today you would earn a total of 23.00 from holding Alcoa Corp or generate 0.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Alcoa Corp vs. EKAR
Performance |
Timeline |
Alcoa Corp |
EKAR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alcoa Corp and EKAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alcoa Corp and EKAR
The main advantage of trading using opposite Alcoa Corp and EKAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, EKAR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EKAR will offset losses from the drop in EKAR's long position.Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. Century Aluminum | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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