Correlation Between Marex Group and CleanTech Lithium

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Can any of the company-specific risk be diversified away by investing in both Marex Group 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 Marex Group and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marex Group plc and CleanTech Lithium Plc, you can compare the effects of market volatilities on Marex Group 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 Marex Group with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marex Group and CleanTech Lithium.

Diversification Opportunities for Marex Group and CleanTech Lithium

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Marex and CleanTech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Marex Group plc 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 Marex Group 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 Marex Group plc 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 Marex Group i.e., Marex Group and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Marex Group and CleanTech Lithium

Considering the 90-day investment horizon Marex Group plc is expected to generate 0.42 times more return on investment than CleanTech Lithium. However, Marex Group plc is 2.37 times less risky than CleanTech Lithium. It trades about -0.12 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  3,894  in Marex Group plc on July 16, 2025 and sell it today you would lose (784.00) from holding Marex Group plc or give up 20.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Marex Group plc  vs.  CleanTech Lithium Plc

 Performance 
       Timeline  
Marex Group plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Marex Group plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
CleanTech Lithium Plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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.

Marex Group and CleanTech Lithium Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marex Group and CleanTech Lithium

The main advantage of trading using opposite Marex Group and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marex Group 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 Marex Group plc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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