Correlation Between PureCycle Technologies and Midland Exploration

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

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

Diversification Opportunities for PureCycle Technologies and Midland Exploration

-0.36

Correlation Coefficient

PureCycle Technologies  Midland Exploration

Very good diversification

The 3 months correlation between PureCycle and Midland is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Midland Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midland Exploration 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 Midland Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midland Exploration has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Midland Exploration go up and down completely randomly.

Pair Corralation between PureCycle Technologies and Midland Exploration

Assuming the 90 days horizon PureCycle Technologies is expected to under-perform the Midland Exploration. But the stock apears to be less risky and, when comparing its historical volatility, PureCycle Technologies is 2.04 times less risky than Midland Exploration. The stock trades about -0.04 of its potential returns per unit of risk. The Midland Exploration is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Midland Exploration on July 22, 2025 and sell it today you would earn a total of  12.00  from holding Midland Exploration or generate 52.17% return on investment over 90 days.

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

PureCycle Technologies  vs.  Midland Exploration

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 inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Midland Exploration

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Midland Exploration are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Midland Exploration reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureCycle Technologies and Midland Exploration

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

The idea behind PureCycle Technologies and Midland Exploration 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.