Correlation Between Alpha Metallurgical and FinTech Acquisition

Can any of the company-specific risk be diversified away by investing in both Alpha Metallurgical and FinTech Acquisition 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 Alpha Metallurgical and FinTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpha Metallurgical Resources and FinTech Acquisition Corp, you can compare the effects of market volatilities on Alpha Metallurgical and FinTech Acquisition 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 Alpha Metallurgical with a short position of FinTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Metallurgical and FinTech Acquisition.

Diversification Opportunities for Alpha Metallurgical and FinTech Acquisition

0.0

Correlation Coefficient

Alpha Metallurgical  FinTech Acquisition

Pay attention - limited upside

The 3 months correlation between Alpha and FinTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Metallurgical Resources and FinTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinTech Acquisition Corp and Alpha Metallurgical 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 Alpha Metallurgical Resources are associated (or correlated) with FinTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinTech Acquisition Corp has no effect on the direction of Alpha Metallurgical i.e., Alpha Metallurgical and FinTech Acquisition go up and down completely randomly.

Pair Corralation between Alpha Metallurgical and FinTech Acquisition

If you would invest (100.00) in FinTech Acquisition Corp on February 27, 2024 and sell it today you would earn a total of  100.00  from holding FinTech Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Alpha Metallurgical Resources  vs.  FinTech Acquisition Corp

Alpha Metallurgical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpha Metallurgical Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in June 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

FinTech Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FinTech Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FinTech Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Alpha Metallurgical and FinTech Acquisition

The main advantage of trading using opposite Alpha Metallurgical and FinTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Metallurgical position performs unexpectedly, FinTech Acquisition 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 FinTech Acquisition will offset losses from the drop in FinTech Acquisition's long position.

The idea behind Alpha Metallurgical Resources and FinTech Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..