Correlation Between Alcoa Corp and Six Flags
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and Six Flags 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 Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and Six Flags Entertainment, you can compare the effects of market volatilities on Alcoa Corp and Six Flags 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 Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Six Flags.
Diversification Opportunities for Alcoa Corp and Six Flags
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and Six is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment 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 Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Six Flags go up and down completely randomly.
Pair Corralation between Alcoa Corp and Six Flags
If you would invest 3,600 in Alcoa Corp on November 9, 2024 and sell it today you would lose (7.00) from holding Alcoa Corp or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alcoa Corp vs. Six Flags Entertainment
Performance |
| Timeline |
| Alcoa Corp |
| Six Flags Entertainment |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Alcoa Corp and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Six Flags
The main advantage of trading using opposite Alcoa Corp and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. Century Aluminum | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum |
| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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