Correlation Between GreenX Metals and CleanTech Lithium

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

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

Diversification Opportunities for GreenX Metals and CleanTech Lithium

0.13

Correlation Coefficient

GreenX Metals  CleanTech Lithium

Average diversification

The 3 months correlation between GreenX and CleanTech is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals 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 GreenX 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and CleanTech Lithium go up and down completely randomly.

Pair Corralation between GreenX Metals and CleanTech Lithium

Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.82 times more return on investment than CleanTech Lithium. However, GreenX Metals is 1.23 times less risky than CleanTech Lithium. It trades about 0.1 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about -0.01 per unit of risk. If you would invest  3,650  in GreenX Metals on September 16, 2025 and sell it today you would earn a total of  500.00  from holding GreenX Metals or generate 13.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GreenX Metals  vs.  CleanTech Lithium plc

GreenX Metals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, GreenX Metals exhibited 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. In spite of rather sound technical and fundamental indicators, CleanTech Lithium is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GreenX Metals and CleanTech Lithium

The main advantage of trading using opposite GreenX Metals and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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 GreenX Metals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..