Correlation Between Critical Metals and Hardide PLC

Can any of the company-specific risk be diversified away by investing in both Critical Metals and Hardide PLC 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 Hardide PLC 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 Hardide PLC, you can compare the effects of market volatilities on Critical Metals and Hardide PLC 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 Hardide PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Metals and Hardide PLC.

Diversification Opportunities for Critical Metals and Hardide PLC

-0.53

Correlation Coefficient

Critical Metals  Hardide PLC

Excellent diversification

The 3 months correlation between Critical and Hardide is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Plc and Hardide PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hardide PLC 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 Hardide PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hardide PLC has no effect on the direction of Critical Metals i.e., Critical Metals and Hardide PLC go up and down completely randomly.

Pair Corralation between Critical Metals and Hardide PLC

Assuming the 90 days trading horizon Critical Metals Plc is expected to under-perform the Hardide PLC. In addition to that, Critical Metals is 1.41 times more volatile than Hardide PLC. It trades about -0.14 of its total potential returns per unit of risk. Hardide PLC is currently generating about 0.0 per unit of volatility. If you would invest  1,150  in Hardide PLC on April 20, 2025 and sell it today you would lose (350.00) from holding Hardide PLC or give up 30.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.4%
Values	Daily Returns

Critical Metals Plc  vs.  Hardide PLC

Critical Metals Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Critical Metals Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hardide PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hardide PLC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Hardide PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Critical Metals and Hardide PLC

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

The idea behind Critical Metals Plc and Hardide 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.

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 CEOs Directory module to screen CEOs from public companies around the world.