Correlation Between Alcoa Corp and HALLIBURTON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alcoa Corp and HALLIBURTON 745 percent, you can compare the effects of market volatilities on Alcoa Corp and HALLIBURTON 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 HALLIBURTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and HALLIBURTON.
Diversification Opportunities for Alcoa Corp and HALLIBURTON
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alcoa and HALLIBURTON is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and HALLIBURTON 745 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALLIBURTON 745 percent 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 HALLIBURTON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALLIBURTON 745 percent has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and HALLIBURTON go up and down completely randomly.
Pair Corralation between Alcoa Corp and HALLIBURTON
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 1.63 times more return on investment than HALLIBURTON. However, Alcoa Corp is 1.63 times more volatile than HALLIBURTON 745 percent. It trades about 0.22 of its potential returns per unit of risk. HALLIBURTON 745 percent is currently generating about 0.11 per unit of risk. If you would invest 4,057 in Alcoa Corp on September 2, 2024 and sell it today you would earn a total of 586.00 from holding Alcoa Corp or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alcoa Corp vs. HALLIBURTON 745 percent
Performance |
| Timeline |
| Alcoa Corp |
| HALLIBURTON 745 percent |
Alcoa Corp and HALLIBURTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and HALLIBURTON
The main advantage of trading using opposite Alcoa Corp and HALLIBURTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, HALLIBURTON 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 HALLIBURTON will offset losses from the drop in HALLIBURTON's long position.| Alcoa Corp vs. Fortitude Gold Corp | Alcoa Corp vs. New Gold | Alcoa Corp vs. Galiano Gold | Alcoa Corp vs. GoldMining |
| HALLIBURTON vs. AEP TEX INC | HALLIBURTON vs. US BANK NATIONAL | HALLIBURTON vs. Bank of America | HALLIBURTON vs. GE Aerospace |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |