Correlation Between AMG Advanced and Clean Power

Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Clean Power 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 AMG Advanced and Clean Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMG Advanced Metallurgical and Clean Power Hydrogen, you can compare the effects of market volatilities on AMG Advanced and Clean Power 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 AMG Advanced with a short position of Clean Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Clean Power.

Diversification Opportunities for AMG Advanced and Clean Power

-0.72

Correlation Coefficient

AMG Advanced  Clean Power

Pay attention - limited upside

The 3 months correlation between AMG and Clean is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Clean Power Hydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Power Hydrogen and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Clean Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Power Hydrogen has no effect on the direction of AMG Advanced i.e., AMG Advanced and Clean Power go up and down completely randomly.

Pair Corralation between AMG Advanced and Clean Power

Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 1.36 times more return on investment than Clean Power. However, AMG Advanced is 1.36 times more volatile than Clean Power Hydrogen. It trades about 0.26 of its potential returns per unit of risk. Clean Power Hydrogen is currently generating about -0.07 per unit of risk. If you would invest  1,575  in AMG Advanced Metallurgical on April 25, 2025 and sell it today you would earn a total of  1,001  from holding AMG Advanced Metallurgical or generate 63.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AMG Advanced Metallurgical  vs.  Clean Power Hydrogen

AMG Advanced Metallu

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AMG Advanced Metallurgical are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, AMG Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Clean Power Hydrogen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clean Power Hydrogen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AMG Advanced and Clean Power

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

The idea behind AMG Advanced Metallurgical and Clean Power Hydrogen 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.