Correlation Between Alcoa Corp and CORNING
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By analyzing existing cross correlation between Alcoa Corp and CORNING INC 585, you can compare the effects of market volatilities on Alcoa Corp and CORNING 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 CORNING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and CORNING.
Diversification Opportunities for Alcoa Corp and CORNING
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and CORNING is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and CORNING INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNING INC 585 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 CORNING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNING INC 585 has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and CORNING go up and down completely randomly.
Pair Corralation between Alcoa Corp and CORNING
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 2.17 times more return on investment than CORNING. However, Alcoa Corp is 2.17 times more volatile than CORNING INC 585. It trades about 0.09 of its potential returns per unit of risk. CORNING INC 585 is currently generating about 0.03 per unit of risk. If you would invest 2,464 in Alcoa Corp on September 4, 2024 and sell it today you would earn a total of 2,126 from holding Alcoa Corp or generate 86.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.76% |
| Values | Daily Returns |
Alcoa Corp vs. CORNING INC 585
Performance |
| Timeline |
| Alcoa Corp |
| CORNING INC 585 |
Alcoa Corp and CORNING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and CORNING
The main advantage of trading using opposite Alcoa Corp and CORNING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, CORNING 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 CORNING will offset losses from the drop in CORNING's long position.| Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. Century Aluminum | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum |
| CORNING vs. Accel Entertainment | CORNING vs. NetSol Technologies | CORNING vs. Data3 Limited | CORNING vs. Infosys Ltd ADR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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