Correlation Between Ameriprise Financial and AMP
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and AMP 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 AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and AMP, you can compare the effects of market volatilities on Ameriprise Financial and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and AMP.
Diversification Opportunities for Ameriprise Financial and AMP
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ameriprise and AMP is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and AMP go up and down completely randomly.
Pair Corralation between Ameriprise Financial and AMP
If you would invest 50,881 in Ameriprise Financial on September 1, 2024 and sell it today you would earn a total of 6,516 from holding Ameriprise Financial or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ameriprise Financial vs. AMP
Performance |
| Timeline |
| Ameriprise Financial |
| AMP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ameriprise Financial and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and AMP
The main advantage of trading using opposite Ameriprise Financial and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Ameriprise Financial vs. State Street Corp | Ameriprise Financial vs. Bank of New | Ameriprise Financial vs. SEI Investments | Ameriprise Financial vs. Principal Financial 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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