Correlation Between Alcoa Corp and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and IMAC Holdings 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 IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and IMAC Holdings, you can compare the effects of market volatilities on Alcoa Corp and IMAC Holdings 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 IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and IMAC Holdings.
Diversification Opportunities for Alcoa Corp and IMAC Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and IMAC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings 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 IMAC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAC Holdings has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and IMAC Holdings go up and down completely randomly.
Pair Corralation between Alcoa Corp and IMAC Holdings
If you would invest 3,918 in Alcoa Corp on August 28, 2024 and sell it today you would earn a total of 824.00 from holding Alcoa Corp or generate 21.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Alcoa Corp vs. IMAC Holdings
Performance |
| Timeline |
| Alcoa Corp |
| IMAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alcoa Corp and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and IMAC Holdings
The main advantage of trading using opposite Alcoa Corp and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, IMAC Holdings 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 IMAC Holdings will offset losses from the drop in IMAC Holdings' long position.The idea behind Alcoa Corp and IMAC Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |