Correlation Between AA Mission and CleanTech Lithium

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

By analyzing existing cross correlation between AA Mission Acquisition and CleanTech Lithium Plc, you can compare the effects of market volatilities on AA Mission 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 AA Mission with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of AA Mission and CleanTech Lithium.

Diversification Opportunities for AA Mission and CleanTech Lithium

0.0

Correlation Coefficient

AA Mission  CleanTech Lithium

Pay attention - limited upside

The 3 months correlation between AAM and CleanTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AA Mission Acquisition 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 AA Mission 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 AA Mission Acquisition 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 AA Mission i.e., AA Mission and CleanTech Lithium go up and down completely randomly.

Pair Corralation between AA Mission and CleanTech Lithium

If you would invest  1,036  in AA Mission Acquisition on May 21, 2025 and sell it today you would earn a total of  10.50  from holding AA Mission Acquisition or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

AA Mission Acquisition  vs.  CleanTech Lithium Plc

AA Mission Acquisition

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AA Mission Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, AA Mission is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CleanTech Lithium Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days CleanTech Lithium Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CleanTech Lithium is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AA Mission and CleanTech Lithium

The main advantage of trading using opposite AA Mission and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AA Mission 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.

The idea behind AA Mission Acquisition and CleanTech Lithium Plc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.