Alcoa Performance

    On a scale of 0 to 100 Alcoa holds performance score of 17. The firm shows Beta (market volatility) of 2.3026 which signifies that as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Alcoa will likely underperform.. Although it is vital to follow to Alcoa Inc historical returns, it is good to be conservative about what you can actually do with the information about equity current trading patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. We have found twenty-six technical indicators for Alcoa Inc which you can use to evaluate performance of the firm. Please makes use of Alcoa Inc Mean Deviation, Information Ratio, Treynor Ratio, as well as the relationship between Downside Deviation and Total Risk Alpha to make a quick decision on weather Alcoa price patterns will revert.
    Investment Horizon     30 Days    Login   to change

    Relative Risk vs. Return Landscape

    If you would invest  2,929  in Alcoa Inc on December 18, 2016 and sell it today you would earn a total of  362.00  from holding Alcoa Inc or generate 12.36% return on investment over 30 days. Alcoa Inc is generating 0.6451% of daily returns and assumes 2.5238% volatility on return distribution over the 30 days horizon. Put differently, 24% of equity instruments are less risky than the company on the bases of their historical return distribution and some 86% of equities are expected to be superior in generating returns on investments over the next 30 days.
     Daily Expected Return (%) 
    Benchmark  Embed   Risk (%) 
    Allowing for the 30-days total investment horizon, Alcoa Inc is expected to generate 6.15 times more return on investment than the market. However, the company is 6.15 times more volatile than its market benchmark. It trades about 0.26 of its potential returns per unit of risk. The NYSE is currently generating roughly 0.11 per unit of risk.

    Operating Margin
    Alcoa Inc Operating Margin
    Based on recorded statements Alcoa Inc has Operating Margin of 4.31%. This is 117.86% lower than that of the Basic Materials sector, and 818.33% lower than that of Aluminum industry, The Operating Margin for all stocks is 139.51% lower than the firm.
    A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

    Alcoa Daily Price Distribution

    The median price of Alcoa for the period between Sun, Dec 18, 2016 and Tue, Jan 17, 2017 is 30.16 with a coefficient of variation of 4.08. The daily time series for the period is distributed with a sample standard deviation of 1.23, arithmetic mean of 30.19, and mean deviation of 0.89. The Stock received some media coverage during the period.

    Risk-adjusted Performance

    Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
    One Month Efficiency
    Alcoa Sharpe Ratio = 0.2556
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    Estimated Market Risk

     2.52
      actual daily
     
     76 %
    of total potential
     
    Market Risk score

    Expected Return

     0.65
      actual daily
     
     14 %
    of total potential
     
    Expected Return score

    Risk-Adjusted Return

     0.26
      actual daily
     
     17 %
    of total potential
     
    Risk-Adjusted Return score
    Based on monthly moving average Alcoa is performing at about 17% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Alcoa by adding it to a well-diversified portfolio.