Correlation Between Ameriprise Financial and CHINA EAST
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and CHINA EAST 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 EAST 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 EAST ED, you can compare the effects of market volatilities on Ameriprise Financial and CHINA EAST 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 EAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and CHINA EAST.
Diversification Opportunities for Ameriprise Financial and CHINA EAST
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ameriprise and CHINA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and CHINA EAST ED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EAST ED 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 EAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EAST ED has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and CHINA EAST go up and down completely randomly.
Pair Corralation between Ameriprise Financial and CHINA EAST
Assuming the 90 days horizon Ameriprise Financial is expected to generate 0.28 times more return on investment than CHINA EAST. However, Ameriprise Financial is 3.53 times less risky than CHINA EAST. It trades about 0.08 of its potential returns per unit of risk. CHINA EAST ED is currently generating about 0.01 per unit of risk. If you would invest 28,897 in Ameriprise Financial on September 29, 2024 and sell it today you would earn a total of 22,463 from holding Ameriprise Financial or generate 77.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ameriprise Financial vs. CHINA EAST ED
Performance |
| Timeline |
| Ameriprise Financial |
| CHINA EAST ED |
Ameriprise Financial and CHINA EAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and CHINA EAST
The main advantage of trading using opposite Ameriprise Financial and CHINA EAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, CHINA EAST 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 EAST will offset losses from the drop in CHINA EAST's long position.| Ameriprise Financial vs. Blackstone Group | Ameriprise Financial vs. The Bank of | Ameriprise Financial vs. T Rowe Price | Ameriprise Financial vs. Ares Management Corp |
| CHINA EAST vs. Warner Music Group | CHINA EAST vs. LEGACY IRON ORE | CHINA EAST vs. Khiron Life Sciences | CHINA EAST vs. UNIVERSAL MUSIC GROUP |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |