Alcoa Corp Correlations

AA Stock

USD 33.97 0.82 2.36%

The current 90-days correlation between Alcoa Corp and Constellium Nv is 0.44 (i.e., Very weak diversification). The correlation of Alcoa Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Alcoa Corp Correlation With Market

Modest diversification

The correlation between Alcoa Corp and DJI is 0.29 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alcoa Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

For information on how to trade Alcoa Stock refer to our How to Trade Alcoa Stock guide.

Moving together with Alcoa Stock

0.75	ERO	Ero Copper Corp	Pair Corr
0.73	FCX	Freeport McMoran Copper Aggressive Push	Pair Corr
0.64	HBM	Hudbay Minerals	Pair Corr

Moving against Alcoa Stock

0.47	X	United States Steel Buyout Trend	Pair Corr
0.41	WLKP	Westlake Chemical	Pair Corr
0.33	MT	ArcelorMittal SA ADR	Pair Corr
0.51	HMY	Harmony Gold Mining	Pair Corr
0.46	PKX	POSCO Holdings	Pair Corr
0.45	KGC	Kinross Gold Aggressive Push	Pair Corr
0.37	NEM	Newmont Goldcorp Corp	Pair Corr
0.32	NUE	Nucor Corp	Pair Corr

Related Correlations Analysis

	CSTM	CENX	CHHQF	KALU	NHYKF
CSTM		-0.09	0.32	-0.43	0.48	CSTM
CENX	-0.09		0.16	0.52	0.1	CENX
CHHQF	0.32	0.16		0.0	0.16	CHHQF
KALU	-0.43	0.52	0.0		-0.16	KALU
NHYKF	0.48	0.1	0.16	-0.16		NHYKF
	CSTM	CENX	CHHQF	KALU	NHYKF

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

KALU	+ 0.52	CENX
NHYKF	+ 0.48	CSTM
CHHQF	+ 0.32	CSTM
CHHQF	+ 0.16	CENX
NHYKF	+ 0.16	CHHQF
NHYKF	+ 0.1	CENX

High negative correlations

KALU	- 0.43	CSTM
NHYKF	- 0.16	KALU
CENX	- 0.09	CSTM
KALU	- 0.0	CHHQF

Risk-Adjusted Indicators

There is a big difference between Alcoa Stock performing well and Alcoa Corp Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Alcoa Corp's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CSTM	2.27	0.41	0.17	0.31	2.16	(2.70)	6.58	(3.90)	20.37
CENX	3.48	0.45	0.07	0.18	5.02	(3.72)	8.79	(11.09)	23.49
CHHQF	0.94	0.46	0.00	0.35	0.00	0.00	0.00	0.00	30.56
KALU	1.40	0.02	0.07	(0.18)	1.93	(1.36)	3.07	(3.31)	9.62
NHYKF	2.27	0.26	0.15	(1.11)	2.34	(2.60)	5.05	(4.19)	12.74

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