Correlation Between Ameriprise Financial and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Atalaya Mining 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 Ameriprise Financial and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Atalaya Mining, you can compare the effects of market volatilities on Ameriprise Financial and Atalaya Mining 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 Ameriprise Financial with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Atalaya Mining.
Diversification Opportunities for Ameriprise Financial and Atalaya Mining
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ameriprise and Atalaya is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Ameriprise Financial 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 Ameriprise Financial are associated (or correlated) with Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Atalaya Mining go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Atalaya Mining
Assuming the 90 days trading horizon Ameriprise Financial is expected to generate 0.99 times more return on investment than Atalaya Mining. However, Ameriprise Financial is 1.01 times less risky than Atalaya Mining. It trades about 0.22 of its potential returns per unit of risk. Atalaya Mining is currently generating about -0.08 per unit of risk. If you would invest 51,263 in Ameriprise Financial on August 28, 2024 and sell it today you would earn a total of 5,795 from holding Ameriprise Financial or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameriprise Financial vs. Atalaya Mining
Performance |
| Timeline |
| Ameriprise Financial |
| Atalaya Mining |
Ameriprise Financial and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Atalaya Mining
The main advantage of trading using opposite Ameriprise Financial and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Ameriprise Financial vs. Samsung Electronics Co | Ameriprise Financial vs. Samsung Electronics Co | Ameriprise Financial vs. Hyundai Motor | Ameriprise Financial vs. Toyota Motor Corp |
| Atalaya Mining vs. Capital Metals PLC | Atalaya Mining vs. European Metals Holdings | Atalaya Mining vs. Panther Metals PLC | Atalaya Mining vs. Sovereign Metals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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