Correlation Between Critical Metals and WHIreland
Can any of the company-specific risk be diversified away by investing in both Critical Metals and WHIreland 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 Critical Metals and WHIreland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Critical Metals Plc and WHIreland Group, you can compare the effects of market volatilities on Critical Metals and WHIreland 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 Critical Metals with a short position of WHIreland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Metals and WHIreland.
Diversification Opportunities for Critical Metals and WHIreland
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Critical and WHIreland is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Plc and WHIreland Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHIreland Group and Critical Metals 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 Critical Metals Plc are associated (or correlated) with WHIreland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHIreland Group has no effect on the direction of Critical Metals i.e., Critical Metals and WHIreland go up and down completely randomly.
Pair Corralation between Critical Metals and WHIreland
Assuming the 90 days trading horizon Critical Metals is expected to generate 1.23 times less return on investment than WHIreland. But when comparing it to its historical volatility, Critical Metals Plc is 4.66 times less risky than WHIreland. It trades about 0.21 of its potential returns per unit of risk. WHIreland Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 220.00 in WHIreland Group on July 20, 2025 and sell it today you would lose (110.00) from holding WHIreland Group or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Critical Metals Plc vs. WHIreland Group
Performance |
| Timeline |
| Critical Metals Plc |
| WHIreland Group |
Critical Metals and WHIreland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Critical Metals and WHIreland
The main advantage of trading using opposite Critical Metals and WHIreland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critical Metals position performs unexpectedly, WHIreland 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 WHIreland will offset losses from the drop in WHIreland's long position.| Critical Metals vs. Givaudan SA | Critical Metals vs. Antofagasta PLC | Critical Metals vs. Clariant AG | Critical Metals vs. EVRAZ plc |
| WHIreland vs. Spirent Communications plc | WHIreland vs. Coeur Mining | WHIreland vs. iShares Physical Silver | WHIreland vs. Anglo Asian Mining |
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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