Correlation Between Critical Metals and REX American

Can any of the company-specific risk be diversified away by investing in both Critical Metals and REX American 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 REX American into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Critical Metals Corp and REX American Resources, you can compare the effects of market volatilities on Critical Metals and REX American 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 REX American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Metals and REX American.

Diversification Opportunities for Critical Metals and REX American

0.0

Correlation Coefficient

Critical Metals  REX American

Pay attention - limited upside

The 3 months correlation between Critical and REX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Corp and REX American Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX American Resources 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 Corp are associated (or correlated) with REX American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX American Resources has no effect on the direction of Critical Metals i.e., Critical Metals and REX American go up and down completely randomly.

Pair Corralation between Critical Metals and REX American

If you would invest  687.00  in Critical Metals Corp on August 26, 2025 and sell it today you would earn a total of  26.00  from holding Critical Metals Corp or generate 3.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Critical Metals Corp  vs.  REX American Resources

Critical Metals Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Critical Metals Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile primary indicators, Critical Metals disclosed solid returns over the last few months and may actually be approaching a breakup point.

REX American Resources

Risk-Adjusted Performance

Soft

Over the last 90 days REX American Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, REX American is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Critical Metals and REX American

The main advantage of trading using opposite Critical Metals and REX American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critical Metals position performs unexpectedly, REX American 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 REX American will offset losses from the drop in REX American's long position.

The idea behind Critical Metals Corp and REX American Resources 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.