Correlation Between SPC Nickel and Gratomic

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

Diversification Opportunities for SPC Nickel and Gratomic

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between SPC and Gratomic is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SPC Nickel Corp and Gratomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratomic and SPC Nickel 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 SPC Nickel Corp are associated (or correlated) with Gratomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratomic has no effect on the direction of SPC Nickel i.e., SPC Nickel and Gratomic go up and down completely randomly.

Pair Corralation between SPC Nickel and Gratomic

Assuming the 90 days horizon SPC Nickel is expected to generate 7.8 times less return on investment than Gratomic. But when comparing it to its historical volatility, SPC Nickel Corp is 2.6 times less risky than Gratomic. It trades about 0.04 of its potential returns per unit of risk. Gratomic is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3.00  in Gratomic on August 23, 2025 and sell it today you would earn a total of  0.63  from holding Gratomic or generate 21.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

SPC Nickel Corp  vs.  Gratomic

 Performance 
       Timeline  
SPC Nickel Corp 

Risk-Adjusted Performance

Good

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

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gratomic are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Gratomic reported solid returns over the last few months and may actually be approaching a breakup point.

SPC Nickel and Gratomic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SPC Nickel and Gratomic

The main advantage of trading using opposite SPC Nickel and Gratomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPC Nickel position performs unexpectedly, Gratomic 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 Gratomic will offset losses from the drop in Gratomic's long position.
The idea behind SPC Nickel Corp and Gratomic 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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