AREC vs. USAR

Last updated Jul 29, 2026

AREC (American Resources Corporation) and USAR (USA Rare Earth, Inc) are both stocks. Both are in the Basic Materials sector — AREC in Coking Coal, USAR in Other Industrial Metals & Mining. Over the past year, AREC returned 42.15% vs 16.20% for USAR. Their 0.45 correlation means their historical movements had little consistent relationship.

Performance

AREC vs. USAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Resources Corporation (AREC) and USA Rare Earth, Inc (USAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AREC achieves a -30.65% return, which is significantly lower than USAR's 18.15% return.

AREC

• 1D: -2.27%
• 1M: -17.31%
• 6M: -56.12%
• YTD: -30.65%
• 1Y: 42.15%
• 3Y*: -2.40%
• 5Y*: -4.63%
• 10Y*: —
• ALL TIME*: 51.05%

USAR

• 1D: -5.83%
• 1M: -31.31%
• 6M: -46.64%
• YTD: 18.15%
• 1Y: 16.20%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 26.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AREC American Resources Corporation	$3.99M	$4.76M	$6.71M
USAR USA Rare Earth, Inc	$158.92M	$176.81M	$348.13M

AREC vs. USAR - Yearly Performance Comparison

	2026 (YTD)	2025
AREC American Resources Corporation	-30.65%	435.64%
USAR USA Rare Earth, Inc	18.15%	16.32%

Correlation

The correlation between AREC and USAR is 0.55, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.55
Correlation (All Time) Calculated using the full available price history since Mar 14, 2025	0.45

The correlation between AREC and USAR shifts across timeframes, from 0.45 (all time) to 0.55 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AREC : $183.99M USAR : $1.36B
EPS AREC : -$0.45 USAR : -$4.98
PS Ratio AREC : 999.86 USAR : 3.67
Total Revenue (TTM) AREC : $145.03K USAR : $319.83M
Gross Profit (TTM) AREC : $140.16K USAR : $253.66M
EBITDA (TTM) AREC : -$22.47M USAR : -$324.99M

Return for Risk

AREC vs. USAR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AREC

AREC Risk / Return Rank: 63
AREC Sharpe Ratio Rank: 59
AREC Sortino Ratio Rank: 71
AREC Omega Ratio Rank: 67
AREC Calmar Ratio Rank: 60
AREC Martin Ratio Rank: 57

USAR

USAR Risk / Return Rank: 56
USAR Sharpe Ratio Rank: 52
USAR Sortino Ratio Rank: 64
USAR Omega Ratio Rank: 59
USAR Calmar Ratio Rank: 53
USAR Martin Ratio Rank: 51

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AREC vs. USAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Resources Corporation (AREC) and USA Rare Earth, Inc (USAR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AREC	USAR	Difference
Sharpe ratio: Return per unit of total volatility	0.33	0.14	+0.19
Sortino ratio: Return per unit of downside risk	1.48	1.13	+0.35
Omega ratio: Gain probability vs. loss probability	1.17	1.12	+0.05
Calmar ratio: Return relative to maximum drawdown	0.55	0.24	+0.32
Martin ratio: Return relative to average drawdown	0.79	0.36	+0.43

AREC vs. USAR - Sharpe Ratio Comparison

The current AREC Sharpe Ratio is 0.33, which is higher than the USAR Sharpe Ratio of 0.14. The chart below compares the historical Sharpe Ratios of AREC and USAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AREC vs. USAR - Drawdown Comparison

The maximum AREC drawdown since its inception was -97.12%, which is greater than USAR's maximum drawdown of -69.23%. Use the drawdown chart below to compare losses from any high point for AREC and USAR.

Drawdown Indicators

	AREC	USAR	Difference
Max Drawdown Largest peak-to-trough decline	-97.12%	-69.23%	-27.89%
Max Drawdown (1Y) Largest decline over 1 year	-76.95%	-69.23%	-7.72%
Max Drawdown (3Y) Largest decline over 3 years	-78.99%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-88.07%	—	—
Current Drawdown Current decline from peak	-87.71%	-63.65%	-24.06%
Average Drawdown Average peak-to-trough decline	-79.80%	-41.77%	-38.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	53.55%	45.20%	+8.35%

Volatility

AREC vs. USAR - Volatility Comparison

American Resources Corporation (AREC) and USA Rare Earth, Inc (USAR) have volatilities of 21.31% and 21.75%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AREC	USAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.31%	21.75%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	64.49%	73.31%	-8.82%
Volatility (1Y) Calculated over the trailing 1-year period	127.75%	116.38%	+11.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	107.44%	153.23%	-45.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	732.17%	153.23%	+578.94%

Dividends

AREC vs. USAR - Dividend Comparison

Neither AREC nor USAR has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both AREC and USAR in my portfolio?

AREC and USAR have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AREC or USAR?

USAR has higher volatility (21.75%) compared to AREC (21.31%). In terms of maximum drawdown, AREC dropped -97.12% vs USAR's -69.23%.

Which has better risk-adjusted returns?

AREC currently has the higher Sharpe Ratio (0.33 vs 0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.