Correlation Between X FAB and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both X FAB 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 X FAB and Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Ameriprise Financial, you can compare the effects of market volatilities on X FAB 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 X FAB with a short position of Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Ameriprise Financial.
Diversification Opportunities for X FAB and Ameriprise Financial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XFB and Ameriprise is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and X FAB 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 X FAB Silicon Foundries 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 X FAB i.e., X FAB and Ameriprise Financial go up and down completely randomly.
Pair Corralation between X FAB and Ameriprise Financial
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 2.76 times more return on investment than Ameriprise Financial. However, X FAB is 2.76 times more volatile than Ameriprise Financial. It trades about 0.05 of its potential returns per unit of risk. Ameriprise Financial is currently generating about -0.07 per unit of risk. If you would invest 501.00 in X FAB Silicon Foundries on October 12, 2024 and sell it today you would earn a total of 9.00 from holding X FAB Silicon Foundries or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Ameriprise Financial
Performance |
| Timeline |
| X FAB Silicon |
| Ameriprise Financial |
X FAB and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Ameriprise Financial
The main advantage of trading using opposite X FAB and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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.| X FAB vs. Zijin Mining Group | X FAB vs. Forsys Metals Corp | X FAB vs. ScanSource | X FAB vs. Perseus Mining Limited |
| Ameriprise Financial vs. X FAB Silicon Foundries | Ameriprise Financial vs. TRI CHEMICAL LABORATINC | Ameriprise Financial vs. SILICON LABORATOR | Ameriprise Financial vs. Mitsubishi Gas Chemical |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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