Correlation Between Gratomic and Camino Minerals

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

Diversification Opportunities for Gratomic and Camino Minerals

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Gratomic and Camino is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gratomic and Camino Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camino Minerals and Gratomic 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 Gratomic are associated (or correlated) with Camino Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camino Minerals has no effect on the direction of Gratomic i.e., Gratomic and Camino Minerals go up and down completely randomly.

Pair Corralation between Gratomic and Camino Minerals

Assuming the 90 days horizon Gratomic is expected to generate 3.97 times more return on investment than Camino Minerals. However, Gratomic is 3.97 times more volatile than Camino Minerals. It trades about 0.09 of its potential returns per unit of risk. Camino Minerals is currently generating about 0.14 per unit of risk. If you would invest  6.30  in Gratomic on September 4, 2025 and sell it today you would lose (2.50) from holding Gratomic or give up 39.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Gratomic  vs.  Camino Minerals

 Performance 
       Timeline  
Gratomic 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gratomic are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, Gratomic reported solid returns over the last few months and may actually be approaching a breakup point.
Camino Minerals 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Camino Minerals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Camino Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Gratomic and Camino Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gratomic and Camino Minerals

The main advantage of trading using opposite Gratomic and Camino Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratomic position performs unexpectedly, Camino Minerals 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 Camino Minerals will offset losses from the drop in Camino Minerals' long position.
The idea behind Gratomic and Camino Minerals 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.
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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