Correlation Between COSMOSTEEL HLDGS and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and Ameriprise Financial, you can compare the effects of market volatilities on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and Ameriprise Financial.
Diversification Opportunities for COSMOSTEEL HLDGS and Ameriprise Financial
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COSMOSTEEL and Ameriprise is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and Ameriprise Financial go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and Ameriprise Financial
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 4.5 times less return on investment than Ameriprise Financial. In addition to that, COSMOSTEEL HLDGS is 2.27 times more volatile than Ameriprise Financial. It trades about 0.01 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.12 per unit of volatility. If you would invest 28,604 in Ameriprise Financial on October 16, 2024 and sell it today you would earn a total of 21,976 from holding Ameriprise Financial or generate 76.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. Ameriprise Financial
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| Ameriprise Financial |
COSMOSTEEL HLDGS and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and Ameriprise Financial
The main advantage of trading using opposite COSMOSTEEL HLDGS and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS 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.| COSMOSTEEL HLDGS vs. Corporate Travel Management | COSMOSTEEL HLDGS vs. ZhongAn Online P | COSMOSTEEL HLDGS vs. PACIFIC ONLINE | COSMOSTEEL HLDGS vs. LANDSEA GREEN MANAGEMENT |
| Ameriprise Financial vs. KINGBOARD CHEMICAL | Ameriprise Financial vs. Tianjin Capital Environmental | Ameriprise Financial vs. COSMOSTEEL HLDGS | Ameriprise Financial vs. KOBE STEEL LTD |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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