Correlation Between Apple and CleanTech Lithium

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

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

Diversification Opportunities for Apple and CleanTech Lithium

0.0

Correlation Coefficient

Apple  CleanTech Lithium

Pay attention - limited upside

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

Pair Corralation between Apple and CleanTech Lithium

If you would invest  20,854  in Apple Inc on May 19, 2025 and sell it today you would earn a total of  2,305  from holding Apple Inc or generate 11.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Apple Inc  vs.  CleanTech Lithium Plc

Apple Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Apple and CleanTech Lithium

The main advantage of trading using opposite Apple and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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 Apple Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.