Correlation Between Antofagasta PLC and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC 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 Antofagasta PLC and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and CleanTech Lithium plc, you can compare the effects of market volatilities on Antofagasta PLC 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 Antofagasta PLC with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and CleanTech Lithium.
Diversification Opportunities for Antofagasta PLC and CleanTech Lithium
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Antofagasta and CleanTech is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC 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 Antofagasta PLC 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 Antofagasta PLC 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 Antofagasta PLC i.e., Antofagasta PLC and CleanTech Lithium go up and down completely randomly.
Pair Corralation between Antofagasta PLC and CleanTech Lithium
Assuming the 90 days trading horizon Antofagasta PLC is expected to generate 0.73 times more return on investment than CleanTech Lithium. However, Antofagasta PLC is 1.37 times less risky than CleanTech Lithium. It trades about -0.02 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about -0.02 per unit of risk. If you would invest 279,000 in Antofagasta PLC on September 1, 2025 and sell it today you would lose (3,200) from holding Antofagasta PLC or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antofagasta PLC vs. CleanTech Lithium plc
Performance |
| Timeline |
| Antofagasta PLC |
| CleanTech Lithium plc |
Antofagasta PLC and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and CleanTech Lithium
The main advantage of trading using opposite Antofagasta PLC and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC 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.| Antofagasta PLC vs. Molson Coors Beverage | Antofagasta PLC vs. Lowland Investment Co | Antofagasta PLC vs. Spotify Technology SA | Antofagasta PLC vs. Aptitude Software Group |
| CleanTech Lithium vs. Software Circle plc | CleanTech Lithium vs. Griffin Mining | CleanTech Lithium vs. Aptitude Software Group | CleanTech Lithium vs. Pan American Silver |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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