Correlation Between EMX Royalty and Alkami Technology

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Can any of the company-specific risk be diversified away by investing in both EMX Royalty and Alkami Technology 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 EMX Royalty and Alkami Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Alkami Technology, you can compare the effects of market volatilities on EMX Royalty and Alkami Technology 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 EMX Royalty with a short position of Alkami Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Alkami Technology.

Diversification Opportunities for EMX Royalty and Alkami Technology

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between EMX and Alkami is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Alkami Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkami Technology and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Alkami Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkami Technology has no effect on the direction of EMX Royalty i.e., EMX Royalty and Alkami Technology go up and down completely randomly.

Pair Corralation between EMX Royalty and Alkami Technology

Considering the 90-day investment horizon EMX Royalty Corp is expected to generate 1.55 times more return on investment than Alkami Technology. However, EMX Royalty is 1.55 times more volatile than Alkami Technology. It trades about 0.02 of its potential returns per unit of risk. Alkami Technology is currently generating about -0.11 per unit of risk. If you would invest  411.00  in EMX Royalty Corp on September 9, 2025 and sell it today you would earn a total of  5.00  from holding EMX Royalty Corp or generate 1.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy78.13%
ValuesDaily Returns

EMX Royalty Corp  vs.  Alkami Technology

 Performance 
       Timeline  
EMX Royalty Corp 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days EMX Royalty Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, EMX Royalty is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Alkami Technology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Alkami Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

EMX Royalty and Alkami Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EMX Royalty and Alkami Technology

The main advantage of trading using opposite EMX Royalty and Alkami Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, Alkami Technology 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 Alkami Technology will offset losses from the drop in Alkami Technology's long position.
The idea behind EMX Royalty Corp and Alkami Technology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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