Correlation Between Alcoa Corp and KROGER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alcoa Corp and KROGER 45 percent, you can compare the effects of market volatilities on Alcoa Corp and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and KROGER.
Diversification Opportunities for Alcoa Corp and KROGER
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and KROGER is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and KROGER 45 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 45 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 45 percent has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and KROGER go up and down completely randomly.
Pair Corralation between Alcoa Corp and KROGER
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 5.9 times more return on investment than KROGER. However, Alcoa Corp is 5.9 times more volatile than KROGER 45 percent. It trades about 0.22 of its potential returns per unit of risk. KROGER 45 percent is currently generating about 0.09 per unit of risk. If you would invest 4,131 in Alcoa Corp on August 28, 2024 and sell it today you would earn a total of 591.00 from holding Alcoa Corp or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alcoa Corp vs. KROGER 45 percent
Performance |
| Timeline |
| Alcoa Corp |
| KROGER 45 percent |
Alcoa Corp and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and KROGER
The main advantage of trading using opposite Alcoa Corp and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.The idea behind Alcoa Corp and KROGER 45 percent pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KROGER vs. The Coca Cola | KROGER vs. JPMorgan Chase Co | KROGER vs. Dupont De Nemours | KROGER vs. Alcoa Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets |