Correlation Between Marex Group and CleanTech Lithium
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Marex Group plc vs. CleanTech Lithium Plc
Performance |
Timeline |
Marex Group plc |
CleanTech Lithium Plc |
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.Marex Group vs. The Coca Cola | Marex Group vs. ScanSource | Marex Group vs. Doman Building Materials | Marex Group vs. Rubber Leaf |
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Check out your portfolio center.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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