Correlation Between Alcoa Corp and CITIGROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alcoa Corp and CITIGROUP INC 53, you can compare the effects of market volatilities on Alcoa Corp and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and CITIGROUP.
Diversification Opportunities for Alcoa Corp and CITIGROUP
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alcoa and CITIGROUP is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and CITIGROUP INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 53 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 53 has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and CITIGROUP go up and down completely randomly.
Pair Corralation between Alcoa Corp and CITIGROUP
Allowing for the 90-day total investment horizon Alcoa Corp is expected to under-perform the CITIGROUP. In addition to that, Alcoa Corp is 1.68 times more volatile than CITIGROUP INC 53. It trades about -0.23 of its total potential returns per unit of risk. CITIGROUP INC 53 is currently generating about -0.21 per unit of volatility. If you would invest 9,932 in CITIGROUP INC 53 on November 1, 2024 and sell it today you would lose (1,214) from holding CITIGROUP INC 53 or give up 12.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcoa Corp vs. CITIGROUP INC 53
Performance |
| Timeline |
| Alcoa Corp |
| CITIGROUP INC 53 |
Alcoa Corp and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and CITIGROUP
The main advantage of trading using opposite Alcoa Corp and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Alcoa Corp vs. Agnico Eagle Mines | Alcoa Corp vs. Pan American Silver | Alcoa Corp vs. Kinross Gold | Alcoa Corp vs. Newmont Goldcorp Corp |
| CITIGROUP vs. Integrated Media Technology | CITIGROUP vs. Eltek | CITIGROUP vs. Vishay Precision Group | CITIGROUP vs. BRP Inc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |