Correlation Between Ameriprise Financial and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Deutsche Bank 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 Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Ameriprise Financial and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Deutsche Bank.
Diversification Opportunities for Ameriprise Financial and Deutsche Bank
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ameriprise and Deutsche is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Deutsche Bank go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Deutsche Bank
Assuming the 90 days trading horizon Ameriprise Financial is expected to generate 3.57 times more return on investment than Deutsche Bank. However, Ameriprise Financial is 3.57 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.22 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about -0.09 per unit of risk. If you would invest 928,741 in Ameriprise Financial on August 28, 2024 and sell it today you would earn a total of 229,412 from holding Ameriprise Financial or generate 24.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ameriprise Financial vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Ameriprise Financial |
| Deutsche Bank Aktien |
Ameriprise Financial and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Deutsche Bank
The main advantage of trading using opposite Ameriprise Financial and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Ameriprise Financial vs. Southwest Airlines | Ameriprise Financial vs. Deutsche Bank Aktiengesellschaft | Ameriprise Financial vs. Genworth Financial | Ameriprise Financial vs. New Oriental Education |
| Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Glencore plc | Deutsche Bank vs. iShares Trust | Deutsche Bank vs. US Bancorp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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