Correlation Between Griffin Mining and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both Griffin Mining 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 Griffin Mining and CleanTech Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and CleanTech Lithium plc, you can compare the effects of market volatilities on Griffin Mining 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 Griffin Mining with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and CleanTech Lithium.
Diversification Opportunities for Griffin Mining and CleanTech Lithium
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Griffin and CleanTech is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining 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 Griffin Mining 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 Griffin Mining 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 Griffin Mining i.e., Griffin Mining and CleanTech Lithium go up and down completely randomly.
Pair Corralation between Griffin Mining and CleanTech Lithium
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.86 times more return on investment than CleanTech Lithium. However, Griffin Mining is 1.16 times less risky than CleanTech Lithium. It trades about 0.11 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 18,900 in Griffin Mining on September 4, 2025 and sell it today you would earn a total of 3,100 from holding Griffin Mining or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. CleanTech Lithium plc
Performance |
| Timeline |
| Griffin Mining |
| CleanTech Lithium plc |
Griffin Mining and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and CleanTech Lithium
The main advantage of trading using opposite Griffin Mining and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining 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.| Griffin Mining vs. Various Eateries PLC | Griffin Mining vs. Aeorema Communications Plc | Griffin Mining vs. Medical Properties Trust | Griffin Mining vs. Darden Restaurants |
| CleanTech Lithium vs. Various Eateries PLC | CleanTech Lithium vs. Universal Health Services | CleanTech Lithium vs. BW Offshore | CleanTech Lithium vs. Cellnex Telecom SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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