Correlation Between Alchemist and SWFTC

Can any of the company-specific risk be diversified away by investing in both Alchemist and SWFTC 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 Alchemist and SWFTC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alchemist AI and SWFTC, you can compare the effects of market volatilities on Alchemist and SWFTC 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 Alchemist with a short position of SWFTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alchemist and SWFTC.

Diversification Opportunities for Alchemist and SWFTC

-0.69

Correlation Coefficient

Alchemist  SWFTC

Excellent diversification

The 3 months correlation between Alchemist and SWFTC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Alchemist AI and SWFTC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWFTC and Alchemist 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 Alchemist AI are associated (or correlated) with SWFTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWFTC has no effect on the direction of Alchemist i.e., Alchemist and SWFTC go up and down completely randomly.

Pair Corralation between Alchemist and SWFTC

Assuming the 90 days trading horizon Alchemist AI is expected to generate 28.3 times more return on investment than SWFTC. However, Alchemist is 28.3 times more volatile than SWFTC. It trades about 0.13 of its potential returns per unit of risk. SWFTC is currently generating about -0.1 per unit of risk. If you would invest  0.00  in Alchemist AI on May 21, 2025 and sell it today you would earn a total of  14.00  from holding Alchemist AI or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Alchemist AI  vs.  SWFTC

Alchemist AI

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alchemist AI are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Alchemist exhibited solid returns over the last few months and may actually be approaching a breakup point.

SWFTC

Risk-Adjusted Performance

Weakest

Over the last 90 days SWFTC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for SWFTC shareholders.

Pair Trading with Alchemist and SWFTC

The main advantage of trading using opposite Alchemist and SWFTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemist position performs unexpectedly, SWFTC 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 SWFTC will offset losses from the drop in SWFTC's long position.

The idea behind Alchemist AI and SWFTC 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.