This module allows you to analyze existing cross correlation between Apple Inc and Alcoa Inc. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Alcoa. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
Apple Inc. vs Alcoa Inc.
Given the investment horizon of 30 days, Apple Inc is expected to under-perform the Alcoa. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 6.05 times less risky than Alcoa. The stock trades about -0.02 of its potential returns per unit of risk. The Alcoa Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,291 in Alcoa Inc on March 29, 2017 and sell it today you would earn a total of 161.00 from holding Alcoa Inc or generate 4.89% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc. and Alcoa Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa Inc and Apple 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 Apple Inc 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 Inc has no effect on the direction of Apple i.e. Apple and Alcoa go up and down completely randomly.
Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.