Correlation Between Chardan NexTech and Alpine 4

Can any of the company-specific risk be diversified away by investing in both Chardan NexTech and Alpine 4 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 Chardan NexTech and Alpine 4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chardan NexTech Acquisition and Alpine 4 Holdings, you can compare the effects of market volatilities on Chardan NexTech and Alpine 4 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 Chardan NexTech with a short position of Alpine 4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Alpine 4.

Diversification Opportunities for Chardan NexTech and Alpine 4

-0.03

Correlation Coefficient

Chardan NexTech  Alpine 4

Good diversification

The 3 months correlation between Chardan and Alpine is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Alpine 4 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine 4 Holdings and Chardan NexTech 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 Chardan NexTech Acquisition are associated (or correlated) with Alpine 4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine 4 Holdings has no effect on the direction of Chardan NexTech i.e., Chardan NexTech and Alpine 4 go up and down completely randomly.

Pair Corralation between Chardan NexTech and Alpine 4

Given the investment horizon of 90 days Chardan NexTech is expected to generate 9.72 times less return on investment than Alpine 4. But when comparing it to its historical volatility, Chardan NexTech Acquisition is 8.52 times less risky than Alpine 4. It trades about 0.21 of its potential returns per unit of risk. Alpine 4 Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  0.03  in Alpine 4 Holdings on August 5, 2025 and sell it today you would earn a total of  0.02  from holding Alpine 4 Holdings or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Chardan NexTech Acquisition  vs.  Alpine 4 Holdings

Chardan NexTech Acqu

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chardan NexTech Acquisition are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Chardan NexTech demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Alpine 4 Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alpine 4 Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Alpine 4 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chardan NexTech and Alpine 4

The main advantage of trading using opposite Chardan NexTech and Alpine 4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech position performs unexpectedly, Alpine 4 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 Alpine 4 will offset losses from the drop in Alpine 4's long position.

The idea behind Chardan NexTech Acquisition and Alpine 4 Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.