Correlation Between Sunrun and Alpha Metallurgical

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sunrun and Alpha Metallurgical 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 Sunrun and Alpha Metallurgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Alpha Metallurgical Resources, you can compare the effects of market volatilities on Sunrun and Alpha Metallurgical 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 Sunrun with a short position of Alpha Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Alpha Metallurgical.

Diversification Opportunities for Sunrun and Alpha Metallurgical

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Sunrun and Alpha is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Alpha Metallurgical Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Metallurgical and Sunrun 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 Sunrun Inc are associated (or correlated) with Alpha Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Metallurgical has no effect on the direction of Sunrun i.e., Sunrun and Alpha Metallurgical go up and down completely randomly.

Pair Corralation between Sunrun and Alpha Metallurgical

Considering the 90-day investment horizon Sunrun Inc is expected to under-perform the Alpha Metallurgical. In addition to that, Sunrun is 1.15 times more volatile than Alpha Metallurgical Resources. It trades about -0.01 of its total potential returns per unit of risk. Alpha Metallurgical Resources is currently generating about 0.14 per unit of volatility. If you would invest  1,155  in Alpha Metallurgical Resources on August 29, 2022 and sell it today you would earn a total of  15,775  from holding Alpha Metallurgical Resources or generate 1365.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sunrun Inc  vs.  Alpha Metallurgical Resources

 Performance (%) 
       Timeline  
Sunrun Inc 
Sunrun Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Sunrun Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Sunrun may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Sunrun Price Channel

Alpha Metallurgical 
Alpha Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Metallurgical Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating primary indicators, Alpha Metallurgical may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Alpha Price Channel

Sunrun and Alpha Metallurgical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sunrun and Alpha Metallurgical

The main advantage of trading using opposite Sunrun and Alpha Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Alpha Metallurgical 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 Alpha Metallurgical will offset losses from the drop in Alpha Metallurgical's long position.
Sunrun vs. First Solar
Sunrun vs. Sunpower Corp
Sunrun vs. NMC HEALTH PLC
The idea behind Sunrun Inc and Alpha Metallurgical Resources 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.
Alpha Metallurgical vs. Shopify
Check out your portfolio center. 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go