Correlation Between Ameriprise Financial and Vista Oil
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Vista Oil 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 Vista Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Vista Oil Gas, you can compare the effects of market volatilities on Ameriprise Financial and Vista Oil 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 Vista Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Vista Oil.
Diversification Opportunities for Ameriprise Financial and Vista Oil
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ameriprise and Vista is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Vista Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Oil Gas 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 Vista Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Oil Gas has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Vista Oil go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Vista Oil
Assuming the 90 days trading horizon Ameriprise Financial is expected to generate 1.2 times less return on investment than Vista Oil. But when comparing it to its historical volatility, Ameriprise Financial is 1.54 times less risky than Vista Oil. It trades about 0.12 of its potential returns per unit of risk. Vista Oil Gas is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 56,000 in Vista Oil Gas on September 23, 2024 and sell it today you would earn a total of 51,190 from holding Vista Oil Gas or generate 91.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Ameriprise Financial vs. Vista Oil Gas
Performance |
| Timeline |
| Ameriprise Financial |
| Vista Oil Gas |
Ameriprise Financial and Vista Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Vista Oil
The main advantage of trading using opposite Ameriprise Financial and Vista Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Vista Oil 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 Vista Oil will offset losses from the drop in Vista Oil's long position.| Ameriprise Financial vs. BlackRock | Ameriprise Financial vs. State Street | Ameriprise Financial vs. Vista Oil Gas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |