Howmet Aerospace Correlations

ARNC34 Stock

BRL 703.80 14.80 2.15%

The current 90-days correlation between Howmet Aerospace and Zoom Video Communications is -0.03 (i.e., Good diversification). The correlation of Howmet Aerospace 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.

Howmet Aerospace Correlation With Market

Average diversification

The correlation between Howmet Aerospace and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Howmet Aerospace and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Howmet Aerospace could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Howmet Aerospace when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Howmet Aerospace - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Howmet Aerospace to buy it.

Moving together with Howmet Stock

0.85	HONB34	Honeywell International	Pair Corr
0.92	E1TN34	Eaton plc	Pair Corr
0.66	C1MI34	Cummins	Pair Corr
0.93	A1ME34	AMETEK,	Pair Corr
0.74	SNEC34	Sony Group Split	Pair Corr
0.64	AAPL34	Apple Inc	Pair Corr

Moving against Howmet Stock

0.79	INEP4	Inepar SA Indstria	Pair Corr
0.78	BABA34	Alibaba Group Holding	Pair Corr
0.71	HOND34	Honda Motor	Pair Corr
0.62	ITUB4	Ita Unibanco Holding	Pair Corr
0.54	ITUB3	Ita Unibanco Holding	Pair Corr

Related Correlations Analysis

	VERZ34	A1IV34	Z1OM34	LBRD34	S1KM34	J1BH34	SSFO34	CLOV34
VERZ34		0.29	0.4	-0.01	0.72	0.4	0.56	-0.13	VERZ34
A1IV34	0.29		0.61	0.15	0.52	0.74	0.13	-0.61	A1IV34
Z1OM34	0.4	0.61		0.5	0.61	0.84	0.63	-0.64	Z1OM34
LBRD34	-0.01	0.15	0.5		0.27	0.37	0.38	-0.13	LBRD34
S1KM34	0.72	0.52	0.61	0.27		0.45	0.46	-0.16	S1KM34
J1BH34	0.4	0.74	0.84	0.37	0.45		0.58	-0.78	J1BH34
SSFO34	0.56	0.13	0.63	0.38	0.46	0.58		-0.22	SSFO34
CLOV34	-0.13	-0.61	-0.64	-0.13	-0.16	-0.78	-0.22		CLOV34
	VERZ34	A1IV34	Z1OM34	LBRD34	S1KM34	J1BH34	SSFO34	CLOV34

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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

J1BH34	+ 0.84	Z1OM34
J1BH34	+ 0.74	A1IV34
S1KM34	+ 0.72	VERZ34
SSFO34	+ 0.63	Z1OM34
Z1OM34	+ 0.61	A1IV34
S1KM34	+ 0.61	Z1OM34

High negative correlations

CLOV34	- 0.78	J1BH34
CLOV34	- 0.64	Z1OM34
CLOV34	- 0.61	A1IV34
CLOV34	- 0.22	SSFO34
CLOV34	- 0.16	S1KM34
CLOV34	- 0.13	LBRD34

Risk-Adjusted Indicators

There is a big difference between Howmet Stock performing well and Howmet Aerospace 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 Howmet Aerospace'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
VERZ34	1.14	0.05	0.02	(0.59)	1.64	(1.17)	2.49	(3.11)	7.22
A1IV34	1.36	0.27	0.11	0.71	1.36	(2.47)	4.90	(4.09)	10.33
Z1OM34	1.92	0.56	0.22	(7.28)	1.98	(2.15)	5.39	(4.05)	11.42
LBRD34	1.74	0.22	0.08	(1.25)	2.44	(1.83)	3.97	(3.75)	21.71
S1KM34	0.77	0.08	0.04	0.35	0.87	(2.36)	3.35	(2.36)	9.83
J1BH34	0.01	(0.01)	0.00	(1.82)	0.00	0.00	0.00	0.00	0.18
SSFO34	1.66	0.52	0.26	(2.15)	1.44	(1.95)	4.08	(3.54)	14.34
CLOV34	3.18	0.47	0.11	0.42	3.57	(3.72)	6.91	(6.48)	40.70

Be your own money manager

Our tools can tell you how much better you can do entering a position in Howmet Aerospace without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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