Correlation Between Celanese and Alpha Metallurgical
Can any of the company-specific risk be diversified away by investing in both Celanese 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 Celanese and Alpha Metallurgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celanese and Alpha Metallurgical Resources, you can compare the effects of market volatilities on Celanese 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 Celanese with a short position of Alpha Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celanese and Alpha Metallurgical.
Diversification Opportunities for Celanese and Alpha Metallurgical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celanese and Alpha is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Celanese and Alpha Metallurgical Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Metallurgical and Celanese 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 Celanese 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 Celanese i.e., Celanese and Alpha Metallurgical go up and down completely randomly.
Pair Corralation between Celanese and Alpha Metallurgical
Allowing for the 90-day total investment horizon Celanese is expected to under-perform the Alpha Metallurgical. But the stock apears to be less risky and, when comparing its historical volatility, Celanese is 1.38 times less risky than Alpha Metallurgical. The stock trades about -0.02 of its potential returns per unit of risk. The Alpha Metallurgical Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15,132 in Alpha Metallurgical Resources on August 24, 2024 and sell it today you would earn a total of 9,414 from holding Alpha Metallurgical Resources or generate 62.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celanese vs. Alpha Metallurgical Resources
Performance |
| Timeline |
| Celanese |
| Alpha Metallurgical |
Celanese and Alpha Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celanese and Alpha Metallurgical
The main advantage of trading using opposite Celanese and Alpha Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celanese 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.| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Valhi Inc |
| Alpha Metallurgical vs. Warrior Met Coal | Alpha Metallurgical vs. Ramaco Resources | Alpha Metallurgical vs. SunCoke Energy | Alpha Metallurgical vs. American Resources Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |