Correlation Between Alpha Metallurgical and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Alpha Metallurgical and BIT Mining 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 BIT Mining 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 BIT Mining, you can compare the effects of market volatilities on Alpha Metallurgical and BIT Mining 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 BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Metallurgical and BIT Mining.
Diversification Opportunities for Alpha Metallurgical and BIT Mining
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alpha and BIT is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Metallurgical Resources and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining 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 BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Alpha Metallurgical i.e., Alpha Metallurgical and BIT Mining go up and down completely randomly.
Pair Corralation between Alpha Metallurgical and BIT Mining
Considering the 90-day investment horizon Alpha Metallurgical Resources is expected to under-perform the BIT Mining. But the stock apears to be less risky and, when comparing its historical volatility, Alpha Metallurgical Resources is 1.11 times less risky than BIT Mining. The stock trades about -0.1 of its potential returns per unit of risk. The BIT Mining is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 283.00 in BIT Mining on November 4, 2024 and sell it today you would lose (20.00) from holding BIT Mining or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Metallurgical Resources vs. BIT Mining
Performance |
| Timeline |
| Alpha Metallurgical |
| BIT Mining |
Alpha Metallurgical and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Metallurgical and BIT Mining
The main advantage of trading using opposite Alpha Metallurgical and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Metallurgical position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| Alpha Metallurgical vs. Warrior Met Coal | Alpha Metallurgical vs. Ramaco Resources | Alpha Metallurgical vs. SunCoke Energy | Alpha Metallurgical vs. American Resources Corp |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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