Correlation Between Cleanspace Holdings and AMP

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

By analyzing existing cross correlation between Cleanspace Holdings and AMP, you can compare the effects of market volatilities on Cleanspace Holdings and AMP 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 Cleanspace Holdings with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanspace Holdings and AMP.

Diversification Opportunities for Cleanspace Holdings and AMP

0.83

Correlation Coefficient

Cleanspace Holdings  AMP

Very poor diversification

The 3 months correlation between Cleanspace and AMP is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cleanspace Holdings and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and Cleanspace Holdings 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 Cleanspace Holdings are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Cleanspace Holdings i.e., Cleanspace Holdings and AMP go up and down completely randomly.

Pair Corralation between Cleanspace Holdings and AMP

Assuming the 90 days trading horizon Cleanspace Holdings is expected to generate 2.92 times more return on investment than AMP. However, Cleanspace Holdings is 2.92 times more volatile than AMP. It trades about 0.05 of its potential returns per unit of risk. AMP is currently generating about 0.06 per unit of risk. If you would invest  31.00  in Cleanspace Holdings on April 24, 2025 and sell it today you would earn a total of  39.00  from holding Cleanspace Holdings or generate 125.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.4%
Values	Daily Returns

Cleanspace Holdings  vs.  AMP

Cleanspace Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cleanspace Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cleanspace Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

AMP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AMP are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AMP unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cleanspace Holdings and AMP

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

The idea behind Cleanspace Holdings and AMP 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.