Correlation Between Alcoa Corp and BIOGEN
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By analyzing existing cross correlation between Alcoa Corp and BIOGEN INC 52, you can compare the effects of market volatilities on Alcoa Corp and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and BIOGEN.
Diversification Opportunities for Alcoa Corp and BIOGEN
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alcoa and BIOGEN is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and BIOGEN INC 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 52 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC 52 has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and BIOGEN go up and down completely randomly.
Pair Corralation between Alcoa Corp and BIOGEN
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 0.93 times more return on investment than BIOGEN. However, Alcoa Corp is 1.07 times less risky than BIOGEN. It trades about 0.14 of its potential returns per unit of risk. BIOGEN INC 52 is currently generating about -0.16 per unit of risk. If you would invest 4,192 in Alcoa Corp on August 25, 2024 and sell it today you would earn a total of 355.00 from holding Alcoa Corp or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Alcoa Corp vs. BIOGEN INC 52
Performance |
| Timeline |
| Alcoa Corp |
| BIOGEN INC 52 |
Alcoa Corp and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and BIOGEN
The main advantage of trading using opposite Alcoa Corp and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Alcoa Corp vs. Fortitude Gold Corp | Alcoa Corp vs. New Gold | Alcoa Corp vs. Galiano Gold | Alcoa Corp vs. GoldMining |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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