Correlation Between Ameriprise Financial and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Lenox Pasifik 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 Lenox Pasifik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Lenox Pasifik Investama, you can compare the effects of market volatilities on Ameriprise Financial and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Lenox Pasifik.
Diversification Opportunities for Ameriprise Financial and Lenox Pasifik
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ameriprise and Lenox is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Lenox Pasifik
Assuming the 90 days horizon Ameriprise Financial is expected to generate 0.09 times more return on investment than Lenox Pasifik. However, Ameriprise Financial is 11.25 times less risky than Lenox Pasifik. It trades about -0.03 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about -0.1 per unit of risk. If you would invest 52,740 in Ameriprise Financial on September 13, 2024 and sell it today you would lose (320.00) from holding Ameriprise Financial or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ameriprise Financial vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Ameriprise Financial |
| Lenox Pasifik Investama |
Ameriprise Financial and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Lenox Pasifik
The main advantage of trading using opposite Ameriprise Financial and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| Ameriprise Financial vs. Ares Management Corp | Ameriprise Financial vs. Superior Plus Corp | Ameriprise Financial vs. SIVERS SEMICONDUCTORS AB | Ameriprise Financial vs. CHINA HUARONG ENERHD 50 |
| Lenox Pasifik vs. Dave Busters Entertainment | Lenox Pasifik vs. Hollywood Bowl Group | Lenox Pasifik vs. Apollo Investment Corp | Lenox Pasifik vs. TOWNSQUARE MEDIA INC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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