Correlation Between American Clean and Amkor Technology

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Can any of the company-specific risk be diversified away by investing in both American Clean and Amkor Technology 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 American Clean and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Clean Resources and Amkor Technology, you can compare the effects of market volatilities on American Clean and Amkor Technology 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 American Clean with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Clean and Amkor Technology.

Diversification Opportunities for American Clean and Amkor Technology

AmericanAmkorDiversified AwayAmericanAmkorDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between American Clean and Amkor Technology

Given the investment horizon of 90 days American Clean Resources is expected to generate 1.88 times more return on investment than Amkor Technology. However, American Clean is 1.88 times more volatile than Amkor Technology. It trades about -0.01 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.03 per unit of risk. If you would invest  825.00  in American Clean Resources on November 30, 2024 and sell it today you would lose (320.00) from holding American Clean Resources or give up 38.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

American Clean Resources  vs.  Amkor Technology

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15ACRG AMKR
       Timeline  
American Clean Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days American Clean Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, American Clean is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5.055.15.15
Amkor Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb222324252627

American Clean and Amkor Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15ACRG AMKR
       Returns  

Pair Trading with American Clean and Amkor Technology

The main advantage of trading using opposite American Clean and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Clean position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.
The idea behind American Clean Resources and Amkor Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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