Correlation Between SPC Nickel and Aston Bay

Can any of the company-specific risk be diversified away by investing in both SPC Nickel and Aston Bay 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 Aston Bay 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 Aston Bay Holdings, you can compare the effects of market volatilities on SPC Nickel and Aston Bay 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 Aston Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPC Nickel and Aston Bay.

Diversification Opportunities for SPC Nickel and Aston Bay

-0.22

Correlation Coefficient

SPC Nickel  Aston Bay

Very good diversification

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

Pair Corralation between SPC Nickel and Aston Bay

Assuming the 90 days horizon SPC Nickel Corp is expected to generate 1.75 times more return on investment than Aston Bay. However, SPC Nickel is 1.75 times more volatile than Aston Bay Holdings. It trades about 0.16 of its potential returns per unit of risk. Aston Bay Holdings is currently generating about -0.03 per unit of risk. If you would invest  2.55  in SPC Nickel Corp on September 8, 2025 and sell it today you would earn a total of  3.32  from holding SPC Nickel Corp or generate 130.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

SPC Nickel Corp  vs.  Aston Bay Holdings

SPC Nickel Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SPC Nickel Corp are ranked lower than 12 (%) 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.

Aston Bay Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Aston Bay Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SPC Nickel and Aston Bay

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

The idea behind SPC Nickel Corp and Aston Bay 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.