Correlation Between Ameriprise Financial and First Republic
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and First Republic Bank, you can compare the effects of market volatilities on Ameriprise Financial and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and First Republic.
Diversification Opportunities for Ameriprise Financial and First Republic
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ameriprise and First is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and First Republic go up and down completely randomly.
Pair Corralation between Ameriprise Financial and First Republic
If you would invest 32,721 in Ameriprise Financial on September 12, 2024 and sell it today you would earn a total of 21,992 from holding Ameriprise Financial or generate 67.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Ameriprise Financial vs. First Republic Bank
Performance |
| Timeline |
| Ameriprise Financial |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ameriprise Financial and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and First Republic
The main advantage of trading using opposite Ameriprise Financial and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Ameriprise Financial vs. Stellus Capital Investment | Ameriprise Financial vs. Prospect Capital | Ameriprise Financial vs. Gladstone Capital | Ameriprise Financial vs. Main Street Capital |
| First Republic vs. Ameriprise Financial | First Republic vs. Nexstar Broadcasting Group | First Republic vs. Artisan Partners Asset | First Republic vs. United Airlines Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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