Correlation Between Cobalt Blue and Silver Spruce

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

By analyzing existing cross correlation between Cobalt Blue Holdings and Silver Spruce Resources, you can compare the effects of market volatilities on Cobalt Blue and Silver Spruce 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 Cobalt Blue with a short position of Silver Spruce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cobalt Blue and Silver Spruce.

Diversification Opportunities for Cobalt Blue and Silver Spruce

-0.07

Correlation Coefficient

Cobalt Blue  Silver Spruce

Good diversification

The 3 months correlation between Cobalt and Silver is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cobalt Blue Holdings and Silver Spruce Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Spruce Resources and Cobalt Blue 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 Cobalt Blue Holdings are associated (or correlated) with Silver Spruce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Spruce Resources has no effect on the direction of Cobalt Blue i.e., Cobalt Blue and Silver Spruce go up and down completely randomly.

Pair Corralation between Cobalt Blue and Silver Spruce

Assuming the 90 days horizon Cobalt Blue Holdings is expected to generate 1.5 times more return on investment than Silver Spruce. However, Cobalt Blue is 1.5 times more volatile than Silver Spruce Resources. It trades about 0.04 of its potential returns per unit of risk. Silver Spruce Resources is currently generating about 0.01 per unit of risk. If you would invest  4.90  in Cobalt Blue Holdings on May 5, 2025 and sell it today you would lose (1.28) from holding Cobalt Blue Holdings or give up 26.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cobalt Blue Holdings  vs.  Silver Spruce Resources

Cobalt Blue Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cobalt Blue Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Cobalt Blue reported solid returns over the last few months and may actually be approaching a breakup point.

Silver Spruce Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver Spruce Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile fundamental drivers, Silver Spruce may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cobalt Blue and Silver Spruce

The main advantage of trading using opposite Cobalt Blue and Silver Spruce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cobalt Blue position performs unexpectedly, Silver Spruce 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 Silver Spruce will offset losses from the drop in Silver Spruce's long position.

The idea behind Cobalt Blue Holdings and Silver Spruce Resources 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.