Correlation Between Clean Power and AMG Advanced

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

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

Diversification Opportunities for Clean Power and AMG Advanced

-0.6

Correlation Coefficient

Clean Power  AMG Advanced

Excellent diversification

The 3 months correlation between Clean and AMG is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Clean Power Hydrogen and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu and Clean Power 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 Clean Power Hydrogen are associated (or correlated) with AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Clean Power i.e., Clean Power and AMG Advanced go up and down completely randomly.

Pair Corralation between Clean Power and AMG Advanced

Assuming the 90 days trading horizon Clean Power Hydrogen is expected to under-perform the AMG Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Clean Power Hydrogen is 1.31 times less risky than AMG Advanced. The stock trades about -0.1 of its potential returns per unit of risk. The AMG Advanced Metallurgical is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  1,473  in AMG Advanced Metallurgical on April 22, 2025 and sell it today you would earn a total of  1,154  from holding AMG Advanced Metallurgical or generate 78.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Clean Power Hydrogen  vs.  AMG Advanced Metallurgical

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 unsteady 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.

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 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AMG Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clean Power and AMG Advanced

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

The idea behind Clean Power Hydrogen and AMG Advanced Metallurgical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.