Correlation Between Celestica and CleanTech Lithium

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

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

Diversification Opportunities for Celestica and CleanTech Lithium

-0.8

Correlation Coefficient

Celestica  CleanTech Lithium

Pay attention - limited upside

The 3 months correlation between Celestica and CleanTech is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Celestica 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 Celestica 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 Celestica 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 Celestica i.e., Celestica and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Celestica and CleanTech Lithium

Considering the 90-day investment horizon Celestica is expected to generate 0.64 times more return on investment than CleanTech Lithium. However, Celestica is 1.56 times less risky than CleanTech Lithium. It trades about 0.18 of its potential returns per unit of risk. CleanTech Lithium Plc is currently generating about -0.12 per unit of risk. If you would invest  16,049  in Celestica on July 15, 2025 and sell it today you would earn a total of  8,323  from holding Celestica or generate 51.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Celestica  vs.  CleanTech Lithium Plc

Celestica

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Celestica are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Celestica unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Celestica and CleanTech Lithium

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

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.