Correlation Between Alcoa Corp and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and AGBA Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alcoa Corp and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and AGBA Acquisition, you can compare the effects of market volatilities on Alcoa Corp and AGBA Acquisition 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 Corp with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and AGBA Acquisition.
Diversification Opportunities for Alcoa Corp and AGBA Acquisition
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alcoa and AGBA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and AGBA Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Alcoa Corp 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 Corp are associated (or correlated) with AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Alcoa Corp and AGBA Acquisition
If you would invest 4,009 in Alcoa Corp on September 1, 2024 and sell it today you would earn a total of 634.00 from holding Alcoa Corp or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alcoa Corp vs. AGBA Acquisition
Performance |
| Timeline |
| Alcoa Corp |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alcoa Corp and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and AGBA Acquisition
The main advantage of trading using opposite Alcoa Corp and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, AGBA Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AGBA Acquisition will offset losses from the drop in AGBA Acquisition's long position.| Alcoa Corp vs. Fortitude Gold Corp | Alcoa Corp vs. New Gold | Alcoa Corp vs. Galiano Gold | Alcoa Corp vs. GoldMining |
| AGBA Acquisition vs. Magic Empire Global | AGBA Acquisition vs. Netcapital | AGBA Acquisition vs. Mercurity Fintech Holding | AGBA Acquisition vs. Zhong Yang Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |