Correlation Between Ameriprise Financial and BBVASM

Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and BBVASM 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 Ameriprise Financial and BBVASM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ameriprise Financial and BBVASM 1875 18 SEP 25, you can compare the effects of market volatilities on Ameriprise Financial and BBVASM 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 Ameriprise Financial with a short position of BBVASM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and BBVASM.

Diversification Opportunities for Ameriprise Financial and BBVASM

0.15

Correlation Coefficient

Ameriprise Financial  BBVASM

Average diversification

The 3 months correlation between Ameriprise and BBVASM is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and BBVASM 1875 18 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVASM 1875 18 and Ameriprise Financial 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 Ameriprise Financial are associated (or correlated) with BBVASM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVASM 1875 18 has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and BBVASM go up and down completely randomly.

Pair Corralation between Ameriprise Financial and BBVASM

Considering the 90-day investment horizon Ameriprise Financial is expected to generate 0.46 times more return on investment than BBVASM. However, Ameriprise Financial is 2.17 times less risky than BBVASM. It trades about -0.16 of its potential returns per unit of risk. BBVASM 1875 18 SEP 25 is currently generating about -0.33 per unit of risk. If you would invest  56,504  in Ameriprise Financial on September 18, 2024 and sell it today you would lose (1,480) from holding Ameriprise Financial or give up 2.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	55.0%
Values	Daily Returns

Ameriprise Financial  vs.  BBVASM 1875 18 SEP 25

Ameriprise Financial

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ameriprise Financial are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal primary indicators, Ameriprise Financial reported solid returns over the last few months and may actually be approaching a breakup point.

BBVASM 1875 18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BBVASM 1875 18 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for BBVASM 1875 18 SEP 25 investors.

Pair Trading with Ameriprise Financial and BBVASM

The main advantage of trading using opposite Ameriprise Financial and BBVASM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, BBVASM 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 BBVASM will offset losses from the drop in BBVASM's long position.

The idea behind Ameriprise Financial and BBVASM 1875 18 SEP 25 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.