Correlation Between Alcoa Corp and KROGER
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By analyzing existing cross correlation between Alcoa Corp and KROGER 8 percent, you can compare the effects of market volatilities on Alcoa Corp and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and KROGER.
Diversification Opportunities for Alcoa Corp and KROGER
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alcoa and KROGER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and KROGER 8 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 8 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 8 percent has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and KROGER go up and down completely randomly.
Pair Corralation between Alcoa Corp and KROGER
Allowing for the 90-day total investment horizon Alcoa Corp is expected to under-perform the KROGER. In addition to that, Alcoa Corp is 6.22 times more volatile than KROGER 8 percent. It trades about -0.09 of its total potential returns per unit of risk. KROGER 8 percent is currently generating about -0.02 per unit of volatility. If you would invest 11,253 in KROGER 8 percent on December 30, 2024 and sell it today you would lose (54.00) from holding KROGER 8 percent or give up 0.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.55% |
Values | Daily Returns |
Alcoa Corp vs. KROGER 8 percent
Performance |
Timeline |
Alcoa Corp |
KROGER 8 percent |
Alcoa Corp and KROGER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alcoa Corp and KROGER
The main advantage of trading using opposite Alcoa Corp and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.Alcoa Corp vs. Constellium Nv | Alcoa Corp vs. Century Aluminum | Alcoa Corp vs. China Hongqiao Group | Alcoa Corp vs. Kaiser Aluminum |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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