AA vs. VALE

Last updated Jun 4, 2026

AA (Alcoa Corporation) and VALE (Vale S.A.) are both stocks. Both are in the Basic Materials sector — AA in Aluminum, VALE in Other Industrial Metals & Mining. Over the past 5 years, AA returned 16.94%/yr vs 2.79%/yr for VALE. At a 0.50 correlation, their price movements are largely independent.

Performance

AA vs. VALE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alcoa Corporation (AA) and Vale S.A. (VALE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AA achieves a 52.66% return, which is significantly higher than VALE's 23.25% return.

AA

• 1D: -3.50%
• 1M: 29.67%
• YTD: 52.66%
• 6M: 83.95%
• 1Y: 195.08%
• 3Y*: 33.82%
• 5Y*: 16.94%
• 10Y*: —

VALE

• 1D: -4.52%
• 1M: 1.39%
• YTD: 23.25%
• 6M: 22.91%
• 1Y: 81.55%
• 3Y*: 14.29%
• 5Y*: 2.79%
• 10Y*: 21.28%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AA vs. VALE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AA Alcoa Corporation	52.66%	42.46%	12.43%	-24.33%	-23.12%	159.05%	7.16%	-19.07%	-50.66%	91.84%
VALE Vale S.A.	23.25%	60.70%	-38.83%	1.57%	32.54%	-1.45%	32.40%	2.72%	12.25%	68.03%

Correlation

The correlation between AA and VALE is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (All Time) Calculated using the full available price history since Nov 2, 2016	0.50

The correlation between AA and VALE has been stable across timeframes, ranging from 0.45 to 0.52 - a consistent structural relationship.

Fundamentals

Market Cap AA : $21.32B VALE : $68.65B
EPS AA : $3.92 VALE : $0.65
PE Ratio AA : 20.63 VALE : 24.58
PS Ratio AA : 1.67 VALE : 1.74
PB Ratio AA : 3.12 VALE : 1.87
Total Revenue (TTM) AA : $12.66B VALE : $39.53B
Gross Profit (TTM) AA : $948.00M VALE : $13.65B
EBITDA (TTM) AA : $1.70B VALE : $14.33B

Return for Risk

AA vs. VALE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AA

AA Risk / Return Rank: 95
AA Sharpe Ratio Rank: 97
AA Sortino Ratio Rank: 94
AA Omega Ratio Rank: 91
AA Calmar Ratio Rank: 98
AA Martin Ratio Rank: 98

VALE

VALE Risk / Return Rank: 90
VALE Sharpe Ratio Rank: 92
VALE Sortino Ratio Rank: 89
VALE Omega Ratio Rank: 88
VALE Calmar Ratio Rank: 88
VALE Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AA vs. VALE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alcoa Corporation (AA) and Vale S.A. (VALE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AA	VALE	Difference
Sharpe ratio: Return per unit of total volatility	3.74	2.60	+1.14
Sortino ratio: Return per unit of downside risk	3.92	3.13	+0.79
Omega ratio: Gain probability vs. loss probability	1.47	1.41	+0.05
Calmar ratio: Return relative to maximum drawdown	12.43	4.13	+8.30
Martin ratio: Return relative to average drawdown	30.82	14.77	+16.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AA vs. VALE - Sharpe Ratio Comparison

The current AA Sharpe Ratio is 3.74, which is higher than the VALE Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of AA and VALE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AA	VALE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.74	2.60	+1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.08	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.31	-0.04

Drawdowns

AA vs. VALE - Drawdown Comparison

The maximum AA drawdown since its inception was -90.90%, roughly equal to the maximum VALE drawdown of -92.78%. Use the drawdown chart below to compare losses from any high point for AA and VALE.

Drawdown Indicators

	AA	VALE	Difference
Max Drawdown Largest peak-to-trough decline	-90.90%	-92.78%	+1.88%
Max Drawdown (1Y) Largest decline over 1 year	-15.80%	-19.85%	+4.05%
Max Drawdown (3Y) Largest decline over 3 years	-52.25%	-41.94%	-10.31%
Max Drawdown (5Y) Largest decline over 5 years	-75.46%	-49.79%	-25.67%
Max Drawdown (10Y) Largest decline over 10 years	—	-57.60%	—
Current Drawdown Current decline from peak	-10.95%	-9.88%	-1.07%
Average Drawdown Average peak-to-trough decline	-46.21%	-36.73%	-9.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.36%	5.54%	+0.82%

Volatility

AA vs. VALE - Volatility Comparison

Alcoa Corporation (AA) has a higher volatility of 15.13% compared to Vale S.A. (VALE) at 9.10%. This indicates that AA's price experiences larger fluctuations and is considered to be riskier than VALE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AA	VALE	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.13%	9.10%	+6.03%
Volatility (6M) Calculated over the trailing 6-month period	38.86%	26.50%	+12.36%
Volatility (1Y) Calculated over the trailing 1-year period	52.62%	31.56%	+21.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.96%	35.41%	+20.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	55.55%	41.00%	+14.55%

Dividends

AA vs. VALE - Dividend Comparison

AA's dividend yield for the trailing twelve months is around 0.49%, less than VALE's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AA Alcoa Corporation	0.49%	0.75%	1.06%	1.18%	0.88%	0.17%	0.00%	0.00%	0.00%	0.00%	0.32%	0.00%
VALE Vale S.A.	3.58%	7.29%	11.41%	7.75%	8.63%	19.70%	2.72%	2.63%	4.16%	3.77%	1.06%	7.48%

Financials

AA vs. VALE - Profitability Comparison

The chart below illustrates the profitability comparison between Alcoa Corporation and Vale S.A. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported a gross profit of 0.00 and revenue of 3.19B. Therefore, the gross margin over that period was 0.0%.

VALE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Vale S.A. reported a gross profit of 3.06B and revenue of 9.26B. Therefore, the gross margin over that period was 33.0%.

AA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported an operating income of 0.00 and revenue of 3.19B, resulting in an operating margin of 0.0%.

VALE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Vale S.A. reported an operating income of 2.67B and revenue of 9.26B, resulting in an operating margin of 28.8%.

AA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported a net income of 425.00M and revenue of 3.19B, resulting in a net margin of 13.3%.

VALE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Vale S.A. reported a net income of 1.89B and revenue of 9.26B, resulting in a net margin of 20.5%.

Frequently Asked Questions

Can I hold both AA and VALE in my portfolio?

AA and VALE have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AA or VALE?

AA has higher volatility (15.13%) compared to VALE (9.10%). In terms of maximum drawdown, AA dropped -90.90% vs VALE's -92.78%.

Which has better risk-adjusted returns?

AA currently has the higher Sharpe Ratio (3.74 vs 2.60), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.