Correlation Between Alliance Mining and Altagas Cum

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

By analyzing existing cross correlation between Alliance Mining Corp and Altagas Cum Red, you can compare the effects of market volatilities on Alliance Mining and Altagas Cum 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 Alliance Mining with a short position of Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliance Mining and Altagas Cum.

Diversification Opportunities for Alliance Mining and Altagas Cum

-0.49

Correlation Coefficient

Alliance Mining  Altagas Cum

Very good diversification

The 3 months correlation between Alliance and Altagas is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alliance Mining Corp and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red and Alliance Mining 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 Alliance Mining Corp are associated (or correlated) with Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Alliance Mining i.e., Alliance Mining and Altagas Cum go up and down completely randomly.

Pair Corralation between Alliance Mining and Altagas Cum

Assuming the 90 days horizon Alliance Mining Corp is expected to generate 17.38 times more return on investment than Altagas Cum. However, Alliance Mining is 17.38 times more volatile than Altagas Cum Red. It trades about 0.03 of its potential returns per unit of risk. Altagas Cum Red is currently generating about 0.44 per unit of risk. If you would invest  20.00  in Alliance Mining Corp on May 7, 2025 and sell it today you would lose (5.00) from holding Alliance Mining Corp or give up 25.0% of portfolio value over 90 days.

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

Alliance Mining Corp  vs.  Altagas Cum Red

Alliance Mining Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alliance Mining Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Alliance Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Altagas Cum Red

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Altagas Cum Red are ranked lower than 34 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Altagas Cum sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alliance Mining and Altagas Cum

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

The idea behind Alliance Mining Corp and Altagas Cum Red 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.