Correlation Between One Choice and Alcoa Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both One Choice and Alcoa Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining One Choice and Alcoa Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Choice Blend and Alcoa Corp, you can compare the effects of market volatilities on One Choice and Alcoa Corp 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 One Choice with a short position of Alcoa Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Choice and Alcoa Corp.

Diversification Opportunities for One Choice and Alcoa Corp

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between AAAKX and Alcoa is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding One Choice Blend and Alcoa Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcoa Corp and One Choice 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 One Choice Blend are associated (or correlated) with Alcoa Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa Corp has no effect on the direction of One Choice i.e., One Choice and Alcoa Corp go up and down completely randomly.

Pair Corralation between One Choice and Alcoa Corp

Assuming the 90 days horizon One Choice is expected to generate 3.78 times less return on investment than Alcoa Corp. But when comparing it to its historical volatility, One Choice Blend is 4.53 times less risky than Alcoa Corp. It trades about 0.47 of its potential returns per unit of risk. Alcoa Corp is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  4,333  in Alcoa Corp on May 19, 2022 and sell it today you would earn a total of  979.00  from holding Alcoa Corp or generate 22.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

One Choice Blend  vs.  Alcoa Corp

 Performance (%) 
       Timeline  
One Choice Blend 
AAAKX Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in One Choice Blend are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, One Choice is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

AAAKX Price Channel

Alcoa Corp 
Alcoa Performance
0 of 100
Over the last 90 days Alcoa Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Alcoa Price Channel

One Choice and Alcoa Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with One Choice and Alcoa Corp

The main advantage of trading using opposite One Choice and Alcoa Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Choice position performs unexpectedly, Alcoa Corp 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 Alcoa Corp will offset losses from the drop in Alcoa Corp's long position.

One Choice Blend

Pair trading matchups for One Choice

The idea behind One Choice Blend and Alcoa Corp 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.
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go