Correlation Between Ameriprise Financial and Banco BTG
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Banco BTG 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 Banco BTG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Banco BTG Pactual, you can compare the effects of market volatilities on Ameriprise Financial and Banco BTG 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 Banco BTG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Banco BTG.
Diversification Opportunities for Ameriprise Financial and Banco BTG
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ameriprise and Banco is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Banco BTG Pactual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco BTG Pactual 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 Banco BTG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco BTG Pactual has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Banco BTG go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Banco BTG
Assuming the 90 days trading horizon Ameriprise Financial is expected to generate 0.72 times more return on investment than Banco BTG. However, Ameriprise Financial is 1.39 times less risky than Banco BTG. It trades about 0.31 of its potential returns per unit of risk. Banco BTG Pactual is currently generating about -0.15 per unit of risk. If you would invest 74,099 in Ameriprise Financial on August 30, 2024 and sell it today you would earn a total of 10,199 from holding Ameriprise Financial or generate 13.76% 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. Banco BTG Pactual
Performance |
| Timeline |
| Ameriprise Financial |
| Banco BTG Pactual |
Ameriprise Financial and Banco BTG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Banco BTG
The main advantage of trading using opposite Ameriprise Financial and Banco BTG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Banco BTG 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 Banco BTG will offset losses from the drop in Banco BTG's long position.| Ameriprise Financial vs. Bread Financial Holdings | Ameriprise Financial vs. Costco Wholesale | Ameriprise Financial vs. Monster Beverage | Ameriprise Financial vs. Lloyds Banking Group |
| Banco BTG vs. Banco BTG Pactual | Banco BTG vs. Banco BTG Pactual | Banco BTG vs. Banco Santander SA | Banco BTG vs. Banco Santander SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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