Correlation Between Ameriprise Financial and China Oilfield
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and China Oilfield 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 China Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and China Oilfield Services, you can compare the effects of market volatilities on Ameriprise Financial and China Oilfield 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 China Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and China Oilfield.
Diversification Opportunities for Ameriprise Financial and China Oilfield
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ameriprise and China is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and China Oilfield Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Oilfield Services 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 China Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Oilfield Services has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and China Oilfield go up and down completely randomly.
Pair Corralation between Ameriprise Financial and China Oilfield
Assuming the 90 days horizon Ameriprise Financial is expected to generate 0.4 times more return on investment than China Oilfield. However, Ameriprise Financial is 2.53 times less risky than China Oilfield. It trades about 0.15 of its potential returns per unit of risk. China Oilfield Services is currently generating about 0.04 per unit of risk. If you would invest 39,603 in Ameriprise Financial on August 29, 2024 and sell it today you would earn a total of 14,937 from holding Ameriprise Financial or generate 37.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameriprise Financial vs. China Oilfield Services
Performance |
| Timeline |
| Ameriprise Financial |
| China Oilfield Services |
Ameriprise Financial and China Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and China Oilfield
The main advantage of trading using opposite Ameriprise Financial and China Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, China Oilfield 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 China Oilfield will offset losses from the drop in China Oilfield's long position.| Ameriprise Financial vs. Superior Plus Corp | Ameriprise Financial vs. NMI Holdings | Ameriprise Financial vs. Origin Agritech | Ameriprise Financial vs. SIVERS SEMICONDUCTORS AB |
| China Oilfield vs. Japan Post Insurance | China Oilfield vs. Ameriprise Financial | China Oilfield vs. REVO INSURANCE SPA | China Oilfield vs. Singapore Reinsurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| 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 | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |