This module allows you to analyze existing cross correlation between Alcoa Corporation and International Business Machines Corporation. You can compare the effects of market volatilities on Alcoa and International Business 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 with a short position of International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and International Business.
|Horizon||30 Days Login to change|
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 July 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
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.
Alcoa and International Business Volatility Contrast
Predicted Return Density
Alcoa Corp. vs. International Business Machine
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the International Business. In addition to that, Alcoa is 1.53 times more volatile than International Business Machines Corporation. It trades about -0.27 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about -0.12 per unit of volatility. If you would invest 14,509 in International Business Machines Corporation on May 16, 2019 and sell it today you would lose (994.00) from holding International Business Machines Corporation or give up 6.85% of portfolio value over 30 days.
Pair Corralation between Alcoa and International Business
|Time Period||2 Months [change]|
Diversification Opportunities for Alcoa and International Business
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business and Alcoa 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 Corporation are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Alcoa i.e. Alcoa and International Business go up and down completely randomly.
See also your portfolio center. Please also try Companies Directory module to evaluate performance of over 100,000 stocks, funds, and etfs against different fundamentals.