Correlation Between Purecycle Technologies and Energy Recovery

Can any of the company-specific risk be diversified away by investing in both Purecycle Technologies and Energy Recovery 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 Purecycle Technologies and Energy Recovery into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Purecycle Technologies Holdings and Energy Recovery, you can compare the effects of market volatilities on Purecycle Technologies and Energy Recovery 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 Purecycle Technologies with a short position of Energy Recovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purecycle Technologies and Energy Recovery.

Diversification Opportunities for Purecycle Technologies and Energy Recovery

0.19

Correlation Coefficient

Purecycle Technologies  Energy Recovery

Average diversification

The 3 months correlation between Purecycle and Energy is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Purecycle Technologies Holding and Energy Recovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Recovery and Purecycle Technologies 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 Purecycle Technologies Holdings are associated (or correlated) with Energy Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Recovery has no effect on the direction of Purecycle Technologies i.e., Purecycle Technologies and Energy Recovery go up and down completely randomly.

Pair Corralation between Purecycle Technologies and Energy Recovery

Assuming the 90 days horizon Purecycle Technologies Holdings is expected to under-perform the Energy Recovery. In addition to that, Purecycle Technologies is 2.37 times more volatile than Energy Recovery. It trades about -0.01 of its total potential returns per unit of risk. Energy Recovery is currently generating about 0.06 per unit of volatility. If you would invest  1,243  in Energy Recovery on September 14, 2025 and sell it today you would earn a total of  204.00  from holding Energy Recovery or generate 16.41% return on investment over 90 days.

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

Purecycle Technologies Holding  vs.  Energy Recovery

Purecycle Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Purecycle Technologies Holdings 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 comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Energy Recovery

Risk-Adjusted Performance

Weakest

Over the last 90 days Energy Recovery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Energy Recovery is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Purecycle Technologies and Energy Recovery

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

The idea behind Purecycle Technologies Holdings and Energy Recovery 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.