AREC vs RMCO: Correlation
How closely do American Resources Corporation (AREC) and Royalty Management Holding Corporation (RMCO) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AREC and RMCO?
Across a 3-year window, the weekly returns of AREC and RMCO correlate at 0.36, moderate. The past 12 months show a tighter link (0.65) than the 3-year average (0.36). Stretching to 5 years gives 0.33, with an annualized covariance of 4439.4 %².
Among the 16 assets we track against AREC, RMCO ranks #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with RMCO ahead by 28.3 points (+18.3% versus +46.6%). One caveat on sizing: AREC is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AREC vs RMCO: side by side
| AREC (American Resources Corporation) | RMCO (Royalty Management Holding Corporation) | |
|---|---|---|
| 1-year return | +18.3% | +46.6% |
| 5-year return | +18.9% | -70.7% |
| Volatility (ann.) | 141.0% | 87.1% |
| Beta vs S&P 500 | 1.27 | 0.25 |
| Max drawdown (3Y) | -78.1% | -93.2% |
| Market cap | $0.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.33% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AREC | RMCO |
|---|---|---|
| 2022 | -26.7% | -0.4% |
| 2023 | +12.9% | -83.0% |
| 2024 | -32.2% | -41.3% |
| 2025 | +145.5% | +211.1% |
| 2026 | +4.0% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AREC and RMCO good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between AREC and RMCO?
The AREC/RMCO correlation stands at 0.36 on a 3-year window (1 year: 0.65, 5 years: 0.33), computed from weekly returns as of 2026-08-27.
Is RMCO a good diversifier for AREC?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: AREC correlations · RMCO correlations
