Correlation Between GreenX Metals and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and CleanTech Lithium plc, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and CleanTech Lithium.
Diversification Opportunities for GreenX Metals and CleanTech Lithium
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GreenX and CleanTech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals 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 GreenX 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and CleanTech Lithium go up and down completely randomly.
Pair Corralation between GreenX Metals and CleanTech Lithium
Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.57 times more return on investment than CleanTech Lithium. However, GreenX Metals is 1.76 times less risky than CleanTech Lithium. It trades about 0.01 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about -0.06 per unit of risk. If you would invest 4,350 in GreenX Metals on October 31, 2024 and sell it today you would lose (300.00) from holding GreenX Metals or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. CleanTech Lithium plc
Performance |
| Timeline |
| GreenX Metals |
| CleanTech Lithium plc |
GreenX Metals and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and CleanTech Lithium
The main advantage of trading using opposite GreenX Metals and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. Lundin Mining Corp | GreenX Metals vs. American Homes 4 | GreenX Metals vs. URU Metals | GreenX Metals vs. McEwen Mining |
| CleanTech Lithium vs. Givaudan SA | CleanTech Lithium vs. Antofagasta PLC | CleanTech Lithium vs. Ferrexpo PLC | CleanTech Lithium vs. Atalaya Mining |
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
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |