Correlation Between Altius Minerals and Gratomic

Can any of the company-specific risk be diversified away by investing in both Altius Minerals 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 Altius Minerals and Gratomic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altius Minerals and Gratomic, you can compare the effects of market volatilities on Altius Minerals 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 Altius Minerals with a short position of Gratomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altius Minerals and Gratomic.

Diversification Opportunities for Altius Minerals and Gratomic

0.56

Correlation Coefficient

Altius Minerals  Gratomic

Very weak diversification

The 3 months correlation between Altius and Gratomic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Altius Minerals and Gratomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratomic and Altius Minerals 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 Altius Minerals 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 Altius Minerals i.e., Altius Minerals and Gratomic go up and down completely randomly.

Pair Corralation between Altius Minerals and Gratomic

Assuming the 90 days horizon Altius Minerals is expected to generate 0.25 times more return on investment than Gratomic. However, Altius Minerals is 4.02 times less risky than Gratomic. It trades about -0.05 of its potential returns per unit of risk. Gratomic is currently generating about -0.06 per unit of risk. If you would invest  1,863  in Altius Minerals on December 29, 2024 and sell it today you would lose (117.00) from holding Altius Minerals or give up 6.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Altius Minerals  vs.  Gratomic

Altius Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altius Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Altius Minerals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Gratomic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gratomic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Altius Minerals and Gratomic

The main advantage of trading using opposite Altius Minerals and Gratomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altius Minerals 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 Altius Minerals 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.