Correlation Analysis Between International Business and Alcoa

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

International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
Alcoa  
00

Risk-Adjusted Performance

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.

International Business and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines Corporation is expected to generate 0.58 times more return on investment than Alcoa. However, International Business Machines Corporation is 1.72 times less risky than Alcoa. It trades about -0.05 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.27 per unit of risk. If you would invest  13,911  in International Business Machines Corporation on May 17, 2019 and sell it today you would lose (396.00)  from holding International Business Machines Corporation or give up 2.85% of portfolio value over 30 days.

Pair Corralation between International Business and Alcoa

0.83
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Alcoa

International Business Machine diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and International Business 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 International Business Machines Corporation 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 International Business i.e. International Business and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Coins and Tokens Correlation module to utilize digital token correlation table to build portfolio of cryptocurrencies across multiple exchanges.


 
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