Correlation Between Grid Metals and RING ENERGY

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

By analyzing existing cross correlation between Grid Metals Corp and RING ENERGY INC, you can compare the effects of market volatilities on Grid Metals and RING ENERGY 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 Grid Metals with a short position of RING ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grid Metals and RING ENERGY.

Diversification Opportunities for Grid Metals and RING ENERGY

0.17

Correlation Coefficient

Grid Metals  RING ENERGY

Average diversification

The 3 months correlation between Grid and RING is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grid Metals Corp and RING ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RING ENERGY INC and Grid Metals 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 Grid Metals Corp are associated (or correlated) with RING ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RING ENERGY INC has no effect on the direction of Grid Metals i.e., Grid Metals and RING ENERGY go up and down completely randomly.

Pair Corralation between Grid Metals and RING ENERGY

Assuming the 90 days horizon Grid Metals Corp is expected to generate 1.09 times more return on investment than RING ENERGY. However, Grid Metals is 1.09 times more volatile than RING ENERGY INC. It trades about 0.06 of its potential returns per unit of risk. RING ENERGY INC is currently generating about 0.01 per unit of risk. If you would invest  5.50  in Grid Metals Corp on October 2, 2025 and sell it today you would earn a total of  4.50  from holding Grid Metals Corp or generate 81.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.49%
Values	Daily Returns

Grid Metals Corp  vs.  RING ENERGY INC

Grid Metals Corp

Risk-Adjusted Performance

Soft

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

RING ENERGY INC

Risk-Adjusted Performance

Weakest

Over the last 90 days RING ENERGY INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Grid Metals and RING ENERGY

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

The idea behind Grid Metals Corp and RING ENERGY INC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.