Correlation Between Ameriprise Financial and AGF Management
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and AGF Management 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 AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and AGF Management Limited, you can compare the effects of market volatilities on Ameriprise Financial and AGF Management 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 AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and AGF Management.
Diversification Opportunities for Ameriprise Financial and AGF Management
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ameriprise and AGF is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management 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 AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and AGF Management go up and down completely randomly.
Pair Corralation between Ameriprise Financial and AGF Management
Assuming the 90 days horizon Ameriprise Financial is expected to generate 0.69 times more return on investment than AGF Management. However, Ameriprise Financial is 1.44 times less risky than AGF Management. It trades about 0.13 of its potential returns per unit of risk. AGF Management Limited is currently generating about 0.07 per unit of risk. If you would invest 29,796 in Ameriprise Financial on August 28, 2024 and sell it today you would earn a total of 24,444 from holding Ameriprise Financial or generate 82.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Ameriprise Financial vs. AGF Management Limited
Performance |
| Timeline |
| Ameriprise Financial |
| AGF Management |
Ameriprise Financial and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and AGF Management
The main advantage of trading using opposite Ameriprise Financial and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.| Ameriprise Financial vs. The Bank of | Ameriprise Financial vs. Superior Plus Corp | Ameriprise Financial vs. NMI Holdings | Ameriprise Financial vs. Origin Agritech |
| AGF Management vs. Diamondrock Hospitality Co | AGF Management vs. Ramsay Health Care | AGF Management vs. THRACE PLASTICS | AGF Management vs. DiamondRock Hospitality |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |