Correlation Between Auction Technology and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Auction Technology and Ameriprise Financial 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 Auction Technology and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Ameriprise Financial, you can compare the effects of market volatilities on Auction Technology and Ameriprise Financial 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 Auction Technology with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Ameriprise Financial.
Diversification Opportunities for Auction Technology and Ameriprise Financial
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auction and Ameriprise is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Auction Technology 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 Auction Technology Group are associated (or correlated) with Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Auction Technology i.e., Auction Technology and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Auction Technology and Ameriprise Financial
Assuming the 90 days trading horizon Auction Technology Group is expected to under-perform the Ameriprise Financial. In addition to that, Auction Technology is 1.07 times more volatile than Ameriprise Financial. It trades about -0.13 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about -0.11 per unit of volatility. If you would invest 55,282 in Ameriprise Financial on November 27, 2024 and sell it today you would lose (2,128) from holding Ameriprise Financial or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Auction Technology Group vs. Ameriprise Financial
Performance |
| Timeline |
| Auction Technology |
| Ameriprise Financial |
Auction Technology and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Ameriprise Financial
The main advantage of trading using opposite Auction Technology and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| Auction Technology vs. Dalata Hotel Group | Auction Technology vs. Infineon Technologies AG | Auction Technology vs. Kinnevik Investment AB | Auction Technology vs. Technicolor |
| Ameriprise Financial vs. First Class Metals | Ameriprise Financial vs. Ondine Biomedical | Ameriprise Financial vs. Metals Exploration Plc | Ameriprise Financial vs. Atalaya Mining |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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