Correlation Between JEFFERIES and Ameriprise Financial
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By analyzing existing cross correlation between JEFFERIES GROUP INC and Ameriprise Financial, you can compare the effects of market volatilities on JEFFERIES 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 JEFFERIES with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JEFFERIES and Ameriprise Financial.
Diversification Opportunities for JEFFERIES and Ameriprise Financial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JEFFERIES and Ameriprise is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JEFFERIES GROUP INC and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and JEFFERIES 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 JEFFERIES GROUP INC 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 JEFFERIES i.e., JEFFERIES and Ameriprise Financial go up and down completely randomly.
Pair Corralation between JEFFERIES and Ameriprise Financial
Assuming the 90 days trading horizon JEFFERIES is expected to generate 13.86 times less return on investment than Ameriprise Financial. But when comparing it to its historical volatility, JEFFERIES GROUP INC is 4.59 times less risky than Ameriprise Financial. It trades about 0.07 of its potential returns per unit of risk. Ameriprise Financial is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 50,659 in Ameriprise Financial on September 5, 2024 and sell it today you would earn a total of 5,913 from holding Ameriprise Financial or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
JEFFERIES GROUP INC vs. Ameriprise Financial
Performance |
| Timeline |
| JEFFERIES GROUP INC |
| Ameriprise Financial |
JEFFERIES and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JEFFERIES and Ameriprise Financial
The main advantage of trading using opposite JEFFERIES and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JEFFERIES 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.| JEFFERIES vs. Ameriprise Financial | JEFFERIES vs. Beyond Meat | JEFFERIES vs. Omni Health | JEFFERIES vs. Lifevantage |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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