Correlation Between PROG Holdings and CleanTech Lithium

Can any of the company-specific risk be diversified away by investing in both PROG Holdings 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 PROG Holdings and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for PROG Holdings and CleanTech Lithium

0.0

Correlation Coefficient

PROG Holdings  CleanTech Lithium

Pay attention - limited upside

The 3 months correlation between PROG and CleanTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings 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 PROG Holdings 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 PROG Holdings 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 PROG Holdings i.e., PROG Holdings and CleanTech Lithium go up and down completely randomly.

Pair Corralation between PROG Holdings and CleanTech Lithium

If you would invest  3,005  in PROG Holdings on May 17, 2025 and sell it today you would earn a total of  363.00  from holding PROG Holdings or generate 12.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

PROG Holdings  vs.  CleanTech Lithium Plc

PROG Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PROG Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

CleanTech Lithium Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days CleanTech Lithium Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CleanTech Lithium is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PROG Holdings and CleanTech Lithium

The main advantage of trading using opposite PROG Holdings and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROG Holdings 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 PROG Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.