Correlation Between Alcoa Corp and Graphic
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By analyzing existing cross correlation between Alcoa Corp and Graphic Packaging International, you can compare the effects of market volatilities on Alcoa Corp and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Graphic.
Diversification Opportunities for Alcoa Corp and Graphic
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alcoa and Graphic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Graphic go up and down completely randomly.
Pair Corralation between Alcoa Corp and Graphic
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 6.28 times more return on investment than Graphic. However, Alcoa Corp is 6.28 times more volatile than Graphic Packaging International. It trades about 0.11 of its potential returns per unit of risk. Graphic Packaging International is currently generating about 0.01 per unit of risk. If you would invest 2,669 in Alcoa Corp on September 1, 2024 and sell it today you would earn a total of 1,974 from holding Alcoa Corp or generate 73.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.19% |
| Values | Daily Returns |
Alcoa Corp vs. Graphic Packaging Internationa
Performance |
| Timeline |
| Alcoa Corp |
| Graphic Packaging |
Alcoa Corp and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Graphic
The main advantage of trading using opposite Alcoa Corp and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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