Correlation Between Alliance Resource and Mammoth Energy
Can any of the company-specific risk be diversified away by investing in both Alliance Resource and Mammoth Energy 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 Resource and Mammoth Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliance Resource Partners and Mammoth Energy Services, you can compare the effects of market volatilities on Alliance Resource and Mammoth Energy 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 Resource with a short position of Mammoth Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliance Resource and Mammoth Energy.
Diversification Opportunities for Alliance Resource and Mammoth Energy
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alliance and Mammoth is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Alliance Resource Partners and Mammoth Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mammoth Energy Services and Alliance Resource 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 Resource Partners are associated (or correlated) with Mammoth Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mammoth Energy Services has no effect on the direction of Alliance Resource i.e., Alliance Resource and Mammoth Energy go up and down completely randomly.
Pair Corralation between Alliance Resource and Mammoth Energy
Given the investment horizon of 90 days Alliance Resource Partners is expected to under-perform the Mammoth Energy. But the stock apears to be less risky and, when comparing its historical volatility, Alliance Resource Partners is 2.21 times less risky than Mammoth Energy. The stock trades about -0.26 of its potential returns per unit of risk. The Mammoth Energy Services is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Mammoth Energy Services on June 10, 2025 and sell it today you would earn a total of 15.00 from holding Mammoth Energy Services or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliance Resource Partners vs. Mammoth Energy Services
Performance |
| Timeline |
| Alliance Resource |
| Mammoth Energy Services |
Alliance Resource and Mammoth Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliance Resource and Mammoth Energy
The main advantage of trading using opposite Alliance Resource and Mammoth Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliance Resource position performs unexpectedly, Mammoth Energy 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 Mammoth Energy will offset losses from the drop in Mammoth Energy's long position.| Alliance Resource vs. Peabody Energy Corp | Alliance Resource vs. Natural Resource Partners | Alliance Resource vs. NACCO Industries | Alliance Resource vs. Hallador Energy |
| Mammoth Energy vs. Matthews International | Mammoth Energy vs. Griffon | Mammoth Energy vs. Compass Diversified Holdings | Mammoth Energy vs. FTAI Infrastructure |
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 the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |