Correlation Between WEC Energy and CleanTech Lithium

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

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

Diversification Opportunities for WEC Energy and CleanTech Lithium

0.0

Correlation Coefficient

WEC Energy  CleanTech Lithium

Pay attention - limited upside

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

Pair Corralation between WEC Energy and CleanTech Lithium

If you would invest  10,768  in WEC Energy Group on May 2, 2025 and sell it today you would earn a total of  68.00  from holding WEC Energy Group or generate 0.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

WEC Energy Group  vs.  CleanTech Lithium Plc

WEC Energy Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WEC Energy Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, WEC Energy is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CleanTech Lithium Plc

Risk-Adjusted Performance

Very Weak

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 recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with WEC Energy and CleanTech Lithium

The main advantage of trading using opposite WEC Energy and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC Energy 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 WEC Energy Group 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.