Correlation Between High Tech and IperionX Limited

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

By analyzing existing cross correlation between High Tech Metals and IperionX Limited American, you can compare the effects of market volatilities on High Tech and IperionX Limited 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 High Tech with a short position of IperionX Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Tech and IperionX Limited.

Diversification Opportunities for High Tech and IperionX Limited

0.48

Correlation Coefficient

High Tech  IperionX Limited

Very weak diversification

The 3 months correlation between High and IperionX is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding High Tech Metals and IperionX Limited American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IperionX Limited American and High Tech 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 High Tech Metals are associated (or correlated) with IperionX Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IperionX Limited American has no effect on the direction of High Tech i.e., High Tech and IperionX Limited go up and down completely randomly.

Pair Corralation between High Tech and IperionX Limited

Assuming the 90 days trading horizon High Tech Metals is expected to generate 1.3 times more return on investment than IperionX Limited. However, High Tech is 1.3 times more volatile than IperionX Limited American. It trades about 0.1 of its potential returns per unit of risk. IperionX Limited American is currently generating about -0.29 per unit of risk. If you would invest  26.00  in High Tech Metals on August 5, 2025 and sell it today you would earn a total of  2.00  from holding High Tech Metals or generate 7.69% return on investment over 90 days.

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

High Tech Metals  vs.  IperionX Limited American

High Tech Metals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in High Tech Metals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, High Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

IperionX Limited American

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in IperionX Limited American are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, IperionX Limited may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with High Tech and IperionX Limited

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

The idea behind High Tech Metals and IperionX Limited American 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.