Correlation Between Tianjin Capital and Critical Metals

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

By analyzing existing cross correlation between Tianjin Capital Environmental and Critical Metals Corp, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of Critical Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Critical Metals.

Diversification Opportunities for Tianjin Capital and Critical Metals

0.32

Correlation Coefficient

Tianjin Capital  Critical Metals

Weak diversification

The 3 months correlation between Tianjin and Critical is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Critical Metals go up and down completely randomly.

Pair Corralation between Tianjin Capital and Critical Metals

If you would invest  886.00  in Critical Metals Corp on September 14, 2025 and sell it today you would earn a total of  32.00  from holding Critical Metals Corp or generate 3.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Tianjin Capital Environmental  vs.  Critical Metals Corp

Tianjin Capital Envi

Risk-Adjusted Performance

Fair

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

Critical Metals Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Critical Metals Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak primary indicators, Critical Metals disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tianjin Capital and Critical Metals

The main advantage of trading using opposite Tianjin Capital and Critical Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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 Tianjin Capital Environmental 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.