Correlation Analysis Between Facebook and Alcoa

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

Facebook  
00

Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Facebook is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short term losses for the investors.
Alcoa  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The prevalent stock price disturbance, may contribute to short term losses for the investors.

Facebook and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 130.5 times less return on investment than Alcoa. But when comparing it to its historical volatility, Facebook is 1.91 times less risky than Alcoa. It trades about 0.0 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,240  in Alcoa Corporation on August 18, 2019 and sell it today you would earn a total of  16.00  from holding Alcoa Corporation or generate 0.71% return on investment over 30 days.

Pair Corralation between Facebook and Alcoa

0.33
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Facebook and Alcoa

Facebook Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Facebook 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 Facebook 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 Facebook i.e. Facebook and Alcoa go up and down completely randomly.
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