Correlation Between Alcoa Corp and Intermap Technologies
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and Intermap Technologies 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 Intermap Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and Intermap Technologies Corp, you can compare the effects of market volatilities on Alcoa Corp and Intermap Technologies 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 Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Intermap Technologies.
Diversification Opportunities for Alcoa Corp and Intermap Technologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alcoa and Intermap is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies 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 Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Intermap Technologies go up and down completely randomly.
Pair Corralation between Alcoa Corp and Intermap Technologies
Allowing for the 90-day total investment horizon Alcoa Corp is expected to under-perform the Intermap Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Alcoa Corp is 1.94 times less risky than Intermap Technologies. The stock trades about -0.1 of its potential returns per unit of risk. The Intermap Technologies Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Intermap Technologies Corp on November 22, 2024 and sell it today you would earn a total of 12.00 from holding Intermap Technologies Corp or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcoa Corp vs. Intermap Technologies Corp
Performance |
| Timeline |
| Alcoa Corp |
| Intermap Technologies |
Alcoa Corp and Intermap Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Intermap Technologies
The main advantage of trading using opposite Alcoa Corp and Intermap Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Intermap Technologies 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 Intermap Technologies will offset losses from the drop in Intermap Technologies' long position.| Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum | Alcoa Corp vs. Norsk Hydro ASA |
| Intermap Technologies vs. LifeSpeak | Intermap Technologies vs. RenoWorks Software | Intermap Technologies vs. 01 Communique Laboratory | Intermap Technologies vs. RESAAS Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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