Correlation Between Old Republic and Ameriprise Financial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Old Republic 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 Old Republic and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and Ameriprise Financial, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and Ameriprise Financial.

Diversification Opportunities for Old Republic and Ameriprise Financial

OldAmeripriseDiversified AwayOldAmeripriseDiversified Away100%
0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Old and Ameriprise is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Old Republic 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 Old Republic International 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 Old Republic i.e., Old Republic and Ameriprise Financial go up and down completely randomly.

Pair Corralation between Old Republic and Ameriprise Financial

Considering the 90-day investment horizon Old Republic International is expected to generate 1.3 times more return on investment than Ameriprise Financial. However, Old Republic is 1.3 times more volatile than Ameriprise Financial. It trades about -0.19 of its potential returns per unit of risk. Ameriprise Financial is currently generating about -0.27 per unit of risk. If you would invest  3,880  in Old Republic International on September 27, 2024 and sell it today you would lose (225.00) from holding Old Republic International or give up 5.8% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Old Republic International  vs.  Ameriprise Financial

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0510152025
JavaScript chart by amCharts 3.21.15ORI AMP
       Timeline  
Old Republic Interna 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Old Republic International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Old Republic is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
JavaScript chart by amCharts 3.21.15NovDecDec343536373839
Ameriprise Financial 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Ameriprise Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent primary indicators, Ameriprise Financial reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec480500520540560580

Old Republic and Ameriprise Financial Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.09-3.06-2.04-1.010.01.032.083.144.19 0.050.100.150.20
JavaScript chart by amCharts 3.21.15ORI AMP
       Returns  

Pair Trading with Old Republic and Ameriprise Financial

The main advantage of trading using opposite Old Republic and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.
The idea behind Old Republic International and Ameriprise Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 .

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation