Correlation Analysis Between ATT and Alcoa

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

Comparative Performance

ATT  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ATT are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively weak essential indicators, ATT may actually be approaching a critical reversion point that can send shares even higher in December 2019.
Alcoa  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Alcoa sustained solid returns over the last few months and may actually be approaching a breakup point.

ATT and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

ATT Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, ATT is expected to generate 1.46 times less return on investment than Alcoa. But when comparing it to its historical volatility, ATT is 2.76 times less risky than Alcoa. It trades about 0.16 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,823  in Alcoa Corporation on October 17, 2019 and sell it today you would earn a total of  266.00  from holding Alcoa Corporation or generate 14.59% return on investment over 30 days.

Pair Corralation between ATT and Alcoa

0.82
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for ATT and Alcoa

ATT Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and ATT 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 ATT 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 ATT i.e. ATT and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
Search macroaxis.com