Correlation Between Metals Creek and Grid Battery

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

Diversification Opportunities for Metals Creek and Grid Battery

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Metals and Grid is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Metals Creek Resources and Grid Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grid Battery Metals and Metals Creek 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 Metals Creek Resources are associated (or correlated) with Grid Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grid Battery Metals has no effect on the direction of Metals Creek i.e., Metals Creek and Grid Battery go up and down completely randomly.

Pair Corralation between Metals Creek and Grid Battery

Assuming the 90 days horizon Metals Creek Resources is expected to generate 2.03 times more return on investment than Grid Battery. However, Metals Creek is 2.03 times more volatile than Grid Battery Metals. It trades about 0.12 of its potential returns per unit of risk. Grid Battery Metals is currently generating about 0.02 per unit of risk. If you would invest  2.00  in Metals Creek Resources on August 22, 2025 and sell it today you would earn a total of  1.00  from holding Metals Creek Resources or generate 50.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Metals Creek Resources  vs.  Grid Battery Metals

 Performance 
       Timeline  
Metals Creek Resources 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Metals Creek Resources are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Metals Creek showed solid returns over the last few months and may actually be approaching a breakup point.
Grid Battery Metals 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Grid Battery Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Grid Battery showed solid returns over the last few months and may actually be approaching a breakup point.

Metals Creek and Grid Battery Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Metals Creek and Grid Battery

The main advantage of trading using opposite Metals Creek and Grid Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Creek position performs unexpectedly, Grid Battery 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 Grid Battery will offset losses from the drop in Grid Battery's long position.
The idea behind Metals Creek Resources and Grid Battery Metals 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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