Correlation Between Alior Bank and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Alior Bank and Ameriprise Financial 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 Alior Bank and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alior Bank SA and Ameriprise Financial, you can compare the effects of market volatilities on Alior Bank and Ameriprise Financial 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 Alior Bank with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and Ameriprise Financial.
Diversification Opportunities for Alior Bank and Ameriprise Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alior and Ameriprise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Alior Bank 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 Alior Bank SA are associated (or correlated) with Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Alior Bank i.e., Alior Bank and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Alior Bank and Ameriprise Financial
If you would invest 51,477 in Ameriprise Financial on August 30, 2024 and sell it today you would earn a total of 5,760 from holding Ameriprise Financial or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alior Bank SA vs. Ameriprise Financial
Performance |
| Timeline |
| Alior Bank SA |
| Ameriprise Financial |
Alior Bank and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and Ameriprise Financial
The main advantage of trading using opposite Alior Bank and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior Bank position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| Alior Bank vs. Toyota Motor Corp | Alior Bank vs. OTP Bank Nyrt | Alior Bank vs. Cognizant Technology Solutions | Alior Bank vs. Lendinvest PLC |
| Ameriprise Financial vs. Tungsten West PLC | Ameriprise Financial vs. Argo Group Limited | Ameriprise Financial vs. Hardide PLC | Ameriprise Financial vs. Versarien PLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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