Correlation Between Cannae Holdings and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Cannae Holdings 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 Cannae Holdings and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannae Holdings and Ameriprise Financial, you can compare the effects of market volatilities on Cannae Holdings 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 Cannae Holdings with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and Ameriprise Financial.
Diversification Opportunities for Cannae Holdings and Ameriprise Financial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cannae and Ameriprise is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Cannae Holdings 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 Cannae Holdings 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 Cannae Holdings i.e., Cannae Holdings and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Cannae Holdings and Ameriprise Financial
Given the investment horizon of 90 days Cannae Holdings is expected to generate 2.63 times less return on investment than Ameriprise Financial. In addition to that, Cannae Holdings is 1.41 times more volatile than Ameriprise Financial. It trades about 0.04 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.14 per unit of volatility. If you would invest 34,475 in Ameriprise Financial on September 14, 2024 and sell it today you would earn a total of 20,503 from holding Ameriprise Financial or generate 59.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cannae Holdings vs. Ameriprise Financial
Performance |
| Timeline |
| Cannae Holdings |
| Ameriprise Financial |
Cannae Holdings and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannae Holdings and Ameriprise Financial
The main advantage of trading using opposite Cannae Holdings and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae Holdings 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.| Cannae Holdings vs. Brightsphere Investment Group | Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
| Ameriprise Financial vs. Visa Class A | Ameriprise Financial vs. Diamond Hill Investment | Ameriprise Financial vs. Distoken Acquisition | Ameriprise Financial vs. AllianceBernstein Holding LP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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