This module allows you to analyze existing cross correlation between Alcoa Corporation and Apple. You can compare the effects of market volatilities on Alcoa and Apple 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 Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and Apple.
|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 Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Apple is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.
Alcoa and Apple Volatility Contrast
Predicted Return Density
Alcoa Corp. vs. Apple Inc
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the Apple. In addition to that, Alcoa is 1.03 times more volatile than Apple. It trades about -0.24 of its total potential returns per unit of risk. Apple is currently generating about -0.03 per unit of volatility. If you would invest 20,430 in Apple on May 26, 2019 and sell it today you would lose (572.00) from holding Apple or give up 2.8% of portfolio value over 30 days.
Pair Corralation between Alcoa and Apple
|Time Period||2 Months [change]|
Diversification Opportunities for Alcoa and Apple
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple has no effect on the direction of Alcoa i.e. Alcoa and Apple go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.