Correlation Between Critical Metals and Helios Towers

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

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

Diversification Opportunities for Critical Metals and Helios Towers

0.61

Correlation Coefficient

Critical Metals  Helios Towers

Poor diversification

The 3 months correlation between Critical and Helios is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Plc and Helios Towers Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Towers Plc and Critical 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 Critical Metals Plc are associated (or correlated) with Helios Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Towers Plc has no effect on the direction of Critical Metals i.e., Critical Metals and Helios Towers go up and down completely randomly.

Pair Corralation between Critical Metals and Helios Towers

Assuming the 90 days trading horizon Critical Metals Plc is expected to generate 2.62 times more return on investment than Helios Towers. However, Critical Metals is 2.62 times more volatile than Helios Towers Plc. It trades about 0.05 of its potential returns per unit of risk. Helios Towers Plc is currently generating about -0.18 per unit of risk. If you would invest  1,000.00  in Critical Metals Plc on September 8, 2025 and sell it today you would earn a total of  25.00  from holding Critical Metals Plc or generate 2.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	90.91%
Values	Daily Returns

Critical Metals Plc  vs.  Helios Towers Plc

Critical Metals Plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Critical Metals Plc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Critical Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Helios Towers Plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Helios Towers Plc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Helios Towers unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Critical Metals and Helios Towers

The main advantage of trading using opposite Critical Metals and Helios Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critical Metals position performs unexpectedly, Helios Towers 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 Helios Towers will offset losses from the drop in Helios Towers' long position.

The idea behind Critical Metals Plc and Helios Towers 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 Global Correlations module to find global opportunities by holding instruments from different markets.