Correlation Between CleanTech Lithium and Check Point
Can any of the company-specific risk be diversified away by investing in both CleanTech Lithium and Check Point 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 CleanTech Lithium and Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanTech Lithium plc and Check Point Software, you can compare the effects of market volatilities on CleanTech Lithium and Check Point 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 CleanTech Lithium with a short position of Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanTech Lithium and Check Point.
Diversification Opportunities for CleanTech Lithium and Check Point
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CleanTech and Check is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CleanTech Lithium plc and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software and CleanTech Lithium 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 CleanTech Lithium plc are associated (or correlated) with Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of CleanTech Lithium i.e., CleanTech Lithium and Check Point go up and down completely randomly.
Pair Corralation between CleanTech Lithium and Check Point
Assuming the 90 days trading horizon CleanTech Lithium plc is expected to generate 1.62 times more return on investment than Check Point. However, CleanTech Lithium is 1.62 times more volatile than Check Point Software. It trades about 0.03 of its potential returns per unit of risk. Check Point Software is currently generating about -0.02 per unit of risk. If you would invest 550.00 in CleanTech Lithium plc on August 31, 2025 and sell it today you would earn a total of 15.00 from holding CleanTech Lithium plc or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
CleanTech Lithium plc vs. Check Point Software
Performance |
| Timeline |
| CleanTech Lithium plc |
| Check Point Software |
CleanTech Lithium and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanTech Lithium and Check Point
The main advantage of trading using opposite CleanTech Lithium and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanTech Lithium position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| CleanTech Lithium vs. Hollywood Bowl Group | CleanTech Lithium vs. Air Products Chemicals | CleanTech Lithium vs. Zurich Insurance Group | CleanTech Lithium vs. Odfjell Drilling |
| Check Point vs. Coeur Mining | Check Point vs. Creo Medical Group | Check Point vs. Atalaya Mining | Check Point vs. Golden Metal Resources |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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