Correlation Between Ameriprise Financial and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and Luxfer Holdings 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 Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and Luxfer Holdings PLC, you can compare the effects of market volatilities on Ameriprise Financial and Luxfer Holdings 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 Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and Luxfer Holdings.
Diversification Opportunities for Ameriprise Financial and Luxfer Holdings
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ameriprise and Luxfer is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC 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 Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Ameriprise Financial and Luxfer Holdings
Considering the 90-day investment horizon Ameriprise Financial is expected to generate 1.17 times less return on investment than Luxfer Holdings. But when comparing it to its historical volatility, Ameriprise Financial is 1.45 times less risky than Luxfer Holdings. It trades about 0.25 of its potential returns per unit of risk. Luxfer Holdings PLC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Luxfer Holdings PLC on August 25, 2024 and sell it today you would earn a total of 193.00 from holding Luxfer Holdings PLC or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameriprise Financial vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Ameriprise Financial |
| Luxfer Holdings PLC |
Ameriprise Financial and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and Luxfer Holdings
The main advantage of trading using opposite Ameriprise Financial and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' 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 |
| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |