| ARLP Stock | | | USD 27.19 0.76 2.88% |
Alliance Resource financial indicator trend analysis is way more than just evaluating Alliance Resource prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Alliance Resource is a good investment. Please check the relationship between Alliance Resource Net Income and its Capital Expenditures accounts. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Alliance Resource Partners. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in bureau of economic analysis.
Net Income vs Capital Expenditures
Net Income vs Capital Expenditures Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
Alliance Resource Net Income account and
Capital Expenditures. At this time, the significance of the direction appears to have strong relationship.
The correlation between Alliance Resource's Net Income and Capital Expenditures is 0.73. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Capital Expenditures in the same time period over historical financial statements of Alliance Resource Partners, assuming nothing else is changed. The correlation between historical values of Alliance Resource's Net Income and Capital Expenditures is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of Alliance Resource Partners are associated (or correlated) with its Capital Expenditures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Capital Expenditures has no effect on the direction of Net Income i.e., Alliance Resource's Net Income and Capital Expenditures go up and down completely randomly.
Correlation Coefficient | 0.73 |
| Relationship Direction | Positive |
| Relationship Strength | Significant |
Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in Alliance Resource financial statement analysis. It represents the amount of money remaining after all of Alliance Resource Partners operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Capital Expenditures
Capital Expenditures are funds used by Alliance Resource to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Alliance Resource operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.
Most indicators from Alliance Resource's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Alliance Resource current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Alliance Resource Partners. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in bureau of economic analysis.
At this time, Alliance Resource's
Sales General And Administrative To Revenue is relatively stable compared to the past year. As of 01/12/2025,
Enterprise Value Over EBITDA is likely to grow to 6.78, while
Enterprise Value is likely to drop slightly above 1.6
B.
Alliance Resource fundamental ratios Correlations
Click cells to compare fundamentals
Alliance Resource Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Alliance Resource fundamental ratios Accounts
Pair Trading with Alliance Resource
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alliance Resource position performs unexpectedly, the other equity 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 Alliance Resource will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Alliance Resource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alliance Resource when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alliance Resource - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alliance Resource Partners to buy it.
The correlation of Alliance Resource is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alliance Resource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alliance Resource moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alliance Resource can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Additional Tools for Alliance Stock Analysis
When running Alliance Resource's price analysis, check to
measure Alliance Resource's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alliance Resource is operating at the current time. Most of Alliance Resource's value examination focuses on studying past and present price action to
predict the probability of Alliance Resource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alliance Resource's price. Additionally, you may evaluate how the addition of Alliance Resource to your portfolios can decrease your overall portfolio volatility.