Correlation Between Easterly Acquisition and Alpha Metallurgical

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

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

Diversification Opportunities for Easterly Acquisition and Alpha Metallurgical

0.0

Correlation Coefficient

Easterly Acquisition  Alpha Metallurgical

Pay attention - limited upside

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

Pair Corralation between Easterly Acquisition and Alpha Metallurgical

If you would invest (100.00) in Easterly Acquisition Corp on February 27, 2024 and sell it today you would earn a total of  100.00  from holding Easterly 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

Easterly Acquisition Corp  vs.  Alpha Metallurgical Resources

Easterly Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Easterly Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Easterly Acquisition is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

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.

Pair Trading with Easterly Acquisition and Alpha Metallurgical

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

The idea behind Easterly Acquisition Corp and Alpha Metallurgical Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.