Correlation Between Alcoa Corp and Mattel
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By analyzing existing cross correlation between Alcoa Corp and Mattel 62 percent, you can compare the effects of market volatilities on Alcoa Corp and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Mattel.
Diversification Opportunities for Alcoa Corp and Mattel
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alcoa and Mattel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Mattel 62 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel 62 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel 62 percent has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Mattel go up and down completely randomly.
Pair Corralation between Alcoa Corp and Mattel
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 2.16 times more return on investment than Mattel. However, Alcoa Corp is 2.16 times more volatile than Mattel 62 percent. It trades about 0.04 of its potential returns per unit of risk. Mattel 62 percent is currently generating about 0.02 per unit of risk. If you would invest 3,491 in Alcoa Corp on August 31, 2024 and sell it today you would earn a total of 1,152 from holding Alcoa Corp or generate 33.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.33% |
| Values | Daily Returns |
Alcoa Corp vs. Mattel 62 percent
Performance |
| Timeline |
| Alcoa Corp |
| Mattel 62 percent |
Alcoa Corp and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Mattel
The main advantage of trading using opposite Alcoa Corp and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Alcoa Corp vs. RLJ Lodging Trust | Alcoa Corp vs. Aquagold International | Alcoa Corp vs. Stepstone Group | Alcoa Corp vs. Morningstar Unconstrained Allocation |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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