Correlation Between PureCycle Technologies and Critical Metals

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

By analyzing existing cross correlation between PureCycle Technologies and Critical Metals Corp, you can compare the effects of market volatilities on PureCycle Technologies and Critical Metals 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 Critical Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureCycle Technologies and Critical Metals.

Diversification Opportunities for PureCycle Technologies and Critical Metals

-0.42

Correlation Coefficient

PureCycle Technologies  Critical Metals

Very good diversification

The 3 months correlation between PureCycle and Critical is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Critical Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critical Metals Corp 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 are associated (or correlated) with Critical Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critical Metals Corp has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Critical Metals go up and down completely randomly.

Pair Corralation between PureCycle Technologies and Critical Metals

Assuming the 90 days horizon PureCycle Technologies is expected to under-perform the Critical Metals. But the stock apears to be less risky and, when comparing its historical volatility, PureCycle Technologies is 1.44 times less risky than Critical Metals. The stock trades about -0.01 of its potential returns per unit of risk. The Critical Metals Corp is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  298.00  in Critical Metals Corp on July 12, 2025 and sell it today you would earn a total of  1,173  from holding Critical Metals Corp or generate 393.62% return on investment over 90 days.

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

PureCycle Technologies  vs.  Critical Metals Corp

PureCycle Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days PureCycle Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, PureCycle Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Critical Metals Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Critical Metals Corp are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting primary indicators, Critical Metals disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureCycle Technologies and Critical Metals

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

The idea behind PureCycle Technologies and Critical Metals Corp 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.