Correlation Between Alcoa Corp and KraneShares
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and KraneShares 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 KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and KraneShares, you can compare the effects of market volatilities on Alcoa Corp and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and KraneShares.
Diversification Opportunities for Alcoa Corp and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and KraneShares go up and down completely randomly.
Pair Corralation between Alcoa Corp and KraneShares
If you would invest 3,975 in Alcoa Corp on December 1, 2024 and sell it today you would lose (650.00) from holding Alcoa Corp or give up 16.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alcoa Corp vs. KraneShares
Performance |
| Timeline |
| Alcoa Corp |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Alcoa Corp and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and KraneShares
The main advantage of trading using opposite Alcoa Corp and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| Alcoa Corp vs. Fortitude Gold Corp | Alcoa Corp vs. New Gold | Alcoa Corp vs. Galiano Gold | Alcoa Corp vs. GoldMining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |