Correlation Between Lakeland Industries and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries 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 Lakeland Industries and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Ameriprise Financial, you can compare the effects of market volatilities on Lakeland Industries 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 Lakeland Industries with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Ameriprise Financial.
Diversification Opportunities for Lakeland Industries and Ameriprise Financial
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lakeland and Ameriprise is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries i.e., Lakeland Industries and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Lakeland Industries and Ameriprise Financial
Given the investment horizon of 90 days Lakeland Industries is expected to generate 1.01 times less return on investment than Ameriprise Financial. In addition to that, Lakeland Industries is 1.75 times more volatile than Ameriprise Financial. It trades about 0.05 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.09 per unit of volatility. If you would invest 31,252 in Ameriprise Financial on August 28, 2024 and sell it today you would earn a total of 25,769 from holding Ameriprise Financial or generate 82.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lakeland Industries vs. Ameriprise Financial
Performance |
| Timeline |
| Lakeland Industries |
| Ameriprise Financial |
Lakeland Industries and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Ameriprise Financial
The main advantage of trading using opposite Lakeland Industries and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries 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.| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
| Ameriprise Financial vs. State Street Corp | Ameriprise Financial vs. Bank of New | Ameriprise Financial vs. SEI Investments | Ameriprise Financial vs. Principal Financial Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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