Correlation Between Greenroc Mining and CleanTech Lithium

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Can any of the company-specific risk be diversified away by investing in both Greenroc 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 Greenroc 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 Greenroc Mining PLC and CleanTech Lithium plc, you can compare the effects of market volatilities on Greenroc 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 Greenroc Mining with a short position of CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and CleanTech Lithium.

Diversification Opportunities for Greenroc Mining and CleanTech Lithium

0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Greenroc and CleanTech is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining 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 Greenroc 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 Greenroc Mining 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 Greenroc Mining i.e., Greenroc Mining and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Greenroc Mining and CleanTech Lithium

Assuming the 90 days trading horizon Greenroc Mining PLC is expected to generate 1.55 times more return on investment than CleanTech Lithium. However, Greenroc Mining is 1.55 times more volatile than CleanTech Lithium plc. It trades about 0.05 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about 0.07 per unit of risk. If you would invest  200.00  in Greenroc Mining PLC on August 26, 2025 and sell it today you would earn a total of  15.00  from holding Greenroc Mining PLC or generate 7.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Greenroc Mining PLC  vs.  CleanTech Lithium plc

 Performance 
       Timeline  
Greenroc Mining PLC 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Greenroc Mining PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Greenroc Mining may actually be approaching a critical reversion point that can send shares even higher in December 2025.
CleanTech Lithium plc 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CleanTech Lithium plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, CleanTech Lithium may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Greenroc Mining and CleanTech Lithium Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Greenroc Mining and CleanTech Lithium

The main advantage of trading using opposite Greenroc Mining and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc 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.
The idea behind Greenroc Mining PLC 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.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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