Correlation Between Arch Resources and InTest

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Can any of the company-specific risk be diversified away by investing in both Arch Resources and InTest 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 Arch Resources and InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arch Resources and inTest, you can compare the effects of market volatilities on Arch Resources and InTest 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 Arch Resources with a short position of InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arch Resources and InTest.

Diversification Opportunities for Arch Resources and InTest

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Arch Resources and InTest

If you would invest  760.00  in inTest on November 13, 2025 and sell it today you would earn a total of  287.00  from holding inTest or generate 37.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Arch Resources  vs.  inTest

 Performance 
       Timeline  
Arch Resources 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Arch Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Arch Resources is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
inTest 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, InTest unveiled solid returns over the last few months and may actually be approaching a breakup point.

Arch Resources and InTest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Arch Resources and InTest

The main advantage of trading using opposite Arch Resources and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arch Resources position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.
The idea behind Arch Resources and inTest 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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