Correlation Between Alcoa Corp and Peak Bancorp
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and Peak Bancorp 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 Peak Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and Peak Bancorp, you can compare the effects of market volatilities on Alcoa Corp and Peak Bancorp 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 Peak Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Peak Bancorp.
Diversification Opportunities for Alcoa Corp and Peak Bancorp
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and Peak is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Peak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Bancorp 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 Peak Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Bancorp has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Peak Bancorp go up and down completely randomly.
Pair Corralation between Alcoa Corp and Peak Bancorp
If you would invest 4,073 in Alcoa Corp on September 4, 2024 and sell it today you would earn a total of 497.00 from holding Alcoa Corp or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alcoa Corp vs. Peak Bancorp
Performance |
| Timeline |
| Alcoa Corp |
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alcoa Corp and Peak Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Peak Bancorp
The main advantage of trading using opposite Alcoa Corp and Peak Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Peak Bancorp 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 Peak Bancorp will offset losses from the drop in Peak Bancorp's long position.| Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. Century Aluminum | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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