Correlation Between Alcoa Corp and CGG
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and CGG 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 CGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and CGG, you can compare the effects of market volatilities on Alcoa Corp and CGG 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 CGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and CGG.
Diversification Opportunities for Alcoa Corp and CGG
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alcoa and CGG is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and CGG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGG 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 CGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGG has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and CGG go up and down completely randomly.
Pair Corralation between Alcoa Corp and CGG
If you would invest 62.00 in CGG on September 12, 2024 and sell it today you would earn a total of 0.00 from holding CGG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alcoa Corp vs. CGG
Performance |
| Timeline |
| Alcoa Corp |
| CGG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alcoa Corp and CGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and CGG
The main advantage of trading using opposite Alcoa Corp and CGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, CGG 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 CGG will offset losses from the drop in CGG's long position.| Alcoa Corp vs. Sligro Food Group | Alcoa Corp vs. FitLife Brands, Common | Alcoa Corp vs. Aeye Inc | Alcoa Corp vs. Ep Emerging Markets |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |