Correlation Between CleanTech Lithium and Cleanaway Waste

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

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

Diversification Opportunities for CleanTech Lithium and Cleanaway Waste

0.0

Correlation Coefficient

CleanTech Lithium  Cleanaway Waste

Pay attention - limited upside

The 3 months correlation between CleanTech and Cleanaway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CleanTech Lithium Plc and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana and CleanTech Lithium 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 CleanTech Lithium Plc are associated (or correlated) with Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of CleanTech Lithium i.e., CleanTech Lithium and Cleanaway Waste go up and down completely randomly.

Pair Corralation between CleanTech Lithium and Cleanaway Waste

If you would invest  178.00  in Cleanaway Waste Management on May 15, 2025 and sell it today you would earn a total of  13.00  from holding Cleanaway Waste Management or generate 7.3% return on investment over 90 days.

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

CleanTech Lithium Plc  vs.  Cleanaway Waste Management

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.

Cleanaway Waste Mana

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cleanaway Waste Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Cleanaway Waste may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CleanTech Lithium and Cleanaway Waste

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

The idea behind CleanTech Lithium Plc and Cleanaway Waste Management 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.