Correlation Between Ameriprise Financial and Aimia
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Aimia 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 Aimia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Aimia Inc, you can compare the effects of market volatilities on Ameriprise Financial and Aimia 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 Aimia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Aimia.
Diversification Opportunities for Ameriprise Financial and Aimia
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ameriprise and Aimia is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Aimia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Inc 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 Aimia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Inc has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Aimia go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Aimia
Considering the 90-day investment horizon Ameriprise Financial is expected to generate 1.68 times more return on investment than Aimia. However, Ameriprise Financial is 1.68 times more volatile than Aimia Inc. It trades about 0.22 of its potential returns per unit of risk. Aimia Inc is currently generating about -0.12 per unit of risk. If you would invest 51,190 in Ameriprise Financial on August 29, 2024 and sell it today you would earn a total of 6,211 from holding Ameriprise Financial or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameriprise Financial vs. Aimia Inc
Performance |
| Timeline |
| Ameriprise Financial |
| Aimia Inc |
Ameriprise Financial and Aimia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Aimia
The main advantage of trading using opposite Ameriprise Financial and Aimia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Aimia 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 Aimia will offset losses from the drop in Aimia's long position.| Ameriprise Financial vs. Aurora Innovation | Ameriprise Financial vs. HUMANA INC | Ameriprise Financial vs. Aquagold International | Ameriprise Financial vs. Barloworld Ltd ADR |
| Aimia vs. Flow Capital Corp | Aimia vs. Ameritrans Capital Corp | Aimia vs. Blackhawk Growth Corp | Aimia vs. Azimut Holding SpA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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