Correlation Between Sprott and Grab Holdings

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

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

Diversification Opportunities for Sprott and Grab Holdings

0.75

Correlation Coefficient

Sprott  Grab Holdings

Poor diversification

The 3 months correlation between Sprott and Grab is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Inc and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings and Sprott 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 Sprott Inc are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of Sprott i.e., Sprott and Grab Holdings go up and down completely randomly.

Pair Corralation between Sprott and Grab Holdings

Considering the 90-day investment horizon Sprott Inc is expected to generate 0.99 times more return on investment than Grab Holdings. However, Sprott Inc is 1.01 times less risky than Grab Holdings. It trades about -0.03 of its potential returns per unit of risk. Grab Holdings is currently generating about -0.04 per unit of risk. If you would invest  8,338  in Sprott Inc on July 31, 2025 and sell it today you would lose (191.00) from holding Sprott Inc or give up 2.29% of portfolio value over 90 days.

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

Sprott Inc  vs.  Grab Holdings

Sprott Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Sprott demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Grab Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Grab Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Grab Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sprott and Grab Holdings

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

The idea behind Sprott Inc and Grab Holdings 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.