Correlation Between Amkor Technology and CleanGo Innovations

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

Diversification Opportunities for Amkor Technology and CleanGo Innovations

AmkorCleanGoDiversified AwayAmkorCleanGoDiversified Away100%
0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Amkor and CleanGo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CleanGo Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanGo Innovations and Amkor Technology 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 Amkor Technology are associated (or correlated) with CleanGo Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanGo Innovations has no effect on the direction of Amkor Technology i.e., Amkor Technology and CleanGo Innovations go up and down completely randomly.

Pair Corralation between Amkor Technology and CleanGo Innovations

Given the investment horizon of 90 days Amkor Technology is expected to generate 11.21 times less return on investment than CleanGo Innovations. But when comparing it to its historical volatility, Amkor Technology is 3.0 times less risky than CleanGo Innovations. It trades about 0.0 of its potential returns per unit of risk. CleanGo Innovations is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  27.00  in CleanGo Innovations on November 30, 2024 and sell it today you would lose (11.00) from holding CleanGo Innovations or give up 40.74% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.8%
ValuesDaily Returns

Amkor Technology  vs.  CleanGo Innovations

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.15AMKR CLGOF
       Timeline  
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 3.21.15DecJanFebJanFeb21222324252627
CleanGo Innovations 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CleanGo Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.160.180.20.220.240.260.280.30.32

Amkor Technology and CleanGo Innovations Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.99-3.01-2.03-1.05-0.06640.861.782.73.624.54 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15AMKR CLGOF
       Returns  

Pair Trading with Amkor Technology and CleanGo Innovations

The main advantage of trading using opposite Amkor Technology and CleanGo Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CleanGo Innovations 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 CleanGo Innovations will offset losses from the drop in CleanGo Innovations' long position.
The idea behind Amkor Technology and CleanGo Innovations 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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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