Correlation Between CleanTech Lithium and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both CleanTech Lithium and Accesso Technology 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 CleanTech Lithium and Accesso Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanTech Lithium plc and Accesso Technology Group, you can compare the effects of market volatilities on CleanTech Lithium and Accesso Technology 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 CleanTech Lithium with a short position of Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanTech Lithium and Accesso Technology.
Diversification Opportunities for CleanTech Lithium and Accesso Technology
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CleanTech and Accesso is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CleanTech Lithium plc and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and CleanTech Lithium 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 CleanTech Lithium plc are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of CleanTech Lithium i.e., CleanTech Lithium and Accesso Technology go up and down completely randomly.
Pair Corralation between CleanTech Lithium and Accesso Technology
Assuming the 90 days trading horizon CleanTech Lithium plc is expected to generate 1.35 times more return on investment than Accesso Technology. However, CleanTech Lithium is 1.35 times more volatile than Accesso Technology Group. It trades about 0.02 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.06 per unit of risk. If you would invest 1,725 in CleanTech Lithium plc on November 7, 2024 and sell it today you would earn a total of 0.00 from holding CleanTech Lithium plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CleanTech Lithium plc vs. Accesso Technology Group
Performance |
| Timeline |
| CleanTech Lithium plc |
| Accesso Technology |
CleanTech Lithium and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanTech Lithium and Accesso Technology
The main advantage of trading using opposite CleanTech Lithium and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanTech Lithium position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| CleanTech Lithium vs. Gamma Communications PLC | CleanTech Lithium vs. Verizon Communications | CleanTech Lithium vs. Clean Power Hydrogen | CleanTech Lithium vs. Fonix Mobile plc |
| Accesso Technology vs. SM Energy Co | Accesso Technology vs. FuelCell Energy | Accesso Technology vs. Grand Vision Media | Accesso Technology vs. Overstock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |