Correlation Between Alcoa Corp and Elamex SA
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and Elamex SA 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 Alcoa Corp and Elamex SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and Elamex SA de, you can compare the effects of market volatilities on Alcoa Corp and Elamex SA 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 Elamex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Elamex SA.
Diversification Opportunities for Alcoa Corp and Elamex SA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alcoa and Elamex is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Elamex SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elamex SA de 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 Elamex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elamex SA de has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Elamex SA go up and down completely randomly.
Pair Corralation between Alcoa Corp and Elamex SA
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 1.43 times more return on investment than Elamex SA. However, Alcoa Corp is 1.43 times more volatile than Elamex SA de. It trades about 0.1 of its potential returns per unit of risk. Elamex SA de is currently generating about 0.13 per unit of risk. If you would invest 3,164 in Alcoa Corp on August 13, 2025 and sell it today you would earn a total of 568.00 from holding Alcoa Corp or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcoa Corp vs. Elamex SA de
Performance |
| Timeline |
| Alcoa Corp |
| Elamex SA de |
Alcoa Corp and Elamex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Elamex SA
The main advantage of trading using opposite Alcoa Corp and Elamex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Elamex SA 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 Elamex SA will offset losses from the drop in Elamex SA's long position.| Alcoa Corp vs. The Mosaic | Alcoa Corp vs. Harmony Gold Mining | Alcoa Corp vs. Coeur Mining | Alcoa Corp vs. Suzano Papel e |
| Elamex SA vs. DAVIDsTEA | Elamex SA vs. Preferred Commerce | Elamex SA vs. BioForce Nanosciences Holdings | Elamex SA vs. Colabor Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |