Correlation Between Alphamin Resources and EMX Royalty

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

Diversification Opportunities for Alphamin Resources and EMX Royalty

AlphaminEMXDiversified AwayAlphaminEMXDiversified Away100%
-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Alphamin and EMX is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alphamin Resources Corp and EMX Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMX Royalty Corp and Alphamin 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 Alphamin Resources Corp are associated (or correlated) with EMX Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMX Royalty Corp has no effect on the direction of Alphamin Resources i.e., Alphamin Resources and EMX Royalty go up and down completely randomly.

Pair Corralation between Alphamin Resources and EMX Royalty

Assuming the 90 days horizon Alphamin Resources Corp is expected to under-perform the EMX Royalty. In addition to that, Alphamin Resources is 1.91 times more volatile than EMX Royalty Corp. It trades about -0.22 of its total potential returns per unit of risk. EMX Royalty Corp is currently generating about 0.04 per unit of volatility. If you would invest  175.00  in EMX Royalty Corp on November 24, 2024 and sell it today you would earn a total of  6.00  from holding EMX Royalty Corp or generate 3.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Alphamin Resources Corp  vs.  EMX Royalty Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 01020304050
JavaScript chart by amCharts 3.21.15AFMJF EMX
       Timeline  
Alphamin Resources Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Alphamin Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.50.550.60.650.70.750.80.85
EMX Royalty Corp 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in EMX Royalty Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, EMX Royalty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.651.71.751.81.851.9

Alphamin Resources and EMX Royalty Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.76-4.31-2.87-1.420.01.132.273.424.57 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15AFMJF EMX
       Returns  

Pair Trading with Alphamin Resources and EMX Royalty

The main advantage of trading using opposite Alphamin Resources and EMX Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphamin Resources position performs unexpectedly, EMX Royalty 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 EMX Royalty will offset losses from the drop in EMX Royalty's long position.
The idea behind Alphamin Resources Corp and EMX Royalty 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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