Correlation Between Alcoa Corp and NORDSTROM
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By analyzing existing cross correlation between Alcoa Corp and NORDSTROM INC 695, you can compare the effects of market volatilities on Alcoa Corp and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and NORDSTROM.
Diversification Opportunities for Alcoa Corp and NORDSTROM
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alcoa and NORDSTROM is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and NORDSTROM go up and down completely randomly.
Pair Corralation between Alcoa Corp and NORDSTROM
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 3.29 times more return on investment than NORDSTROM. However, Alcoa Corp is 3.29 times more volatile than NORDSTROM INC 695. It trades about 0.14 of its potential returns per unit of risk. NORDSTROM INC 695 is currently generating about -0.12 per unit of risk. If you would invest 4,192 in Alcoa Corp on August 25, 2024 and sell it today you would earn a total of 355.00 from holding Alcoa Corp or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcoa Corp vs. NORDSTROM INC 695
Performance |
| Timeline |
| Alcoa Corp |
| NORDSTROM INC 695 |
Alcoa Corp and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and NORDSTROM
The main advantage of trading using opposite Alcoa Corp and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM's long position.| Alcoa Corp vs. Eshallgo Class A | Alcoa Corp vs. Amtech Systems | Alcoa Corp vs. Gold Fields Ltd | Alcoa Corp vs. Aegean Airlines SA |
| NORDSTROM vs. The Coca Cola | NORDSTROM vs. JPMorgan Chase Co | NORDSTROM vs. Dupont De Nemours | NORDSTROM 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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