Correlation Between Andrews Sykes and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both Andrews Sykes and CleanTech Lithium 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 Andrews Sykes and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andrews Sykes Group and CleanTech Lithium plc, you can compare the effects of market volatilities on Andrews Sykes and CleanTech Lithium 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 Andrews Sykes with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrews Sykes and CleanTech Lithium.
Diversification Opportunities for Andrews Sykes and CleanTech Lithium
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Andrews and CleanTech is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Andrews Sykes Group and CleanTech Lithium plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium plc and Andrews Sykes 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 Andrews Sykes Group are associated (or correlated) with CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium plc has no effect on the direction of Andrews Sykes i.e., Andrews Sykes and CleanTech Lithium go up and down completely randomly.
Pair Corralation between Andrews Sykes and CleanTech Lithium
Assuming the 90 days trading horizon Andrews Sykes Group is expected to generate 0.26 times more return on investment than CleanTech Lithium. However, Andrews Sykes Group is 3.85 times less risky than CleanTech Lithium. It trades about 0.04 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about -0.03 per unit of risk. If you would invest 39,896 in Andrews Sykes Group on September 4, 2024 and sell it today you would earn a total of 11,354 from holding Andrews Sykes Group or generate 28.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andrews Sykes Group vs. CleanTech Lithium plc
Performance |
| Timeline |
| Andrews Sykes Group |
| CleanTech Lithium plc |
Andrews Sykes and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andrews Sykes and CleanTech Lithium
The main advantage of trading using opposite Andrews Sykes and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrews Sykes position performs unexpectedly, CleanTech Lithium 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 CleanTech Lithium will offset losses from the drop in CleanTech Lithium's long position.| Andrews Sykes vs. Cornish Metals | Andrews Sykes vs. Broadcom | Andrews Sykes vs. Trainline Plc | Andrews Sykes vs. GreenX Metals |
| CleanTech Lithium vs. Antofagasta PLC | CleanTech Lithium vs. Atalaya Mining | CleanTech Lithium vs. Ferrexpo PLC | CleanTech Lithium vs. Amaroq Minerals |
Check out your portfolio center.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |