Correlation Between COREBRIDGE FINANCIAL and Ameriprise Financial

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

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

Diversification Opportunities for COREBRIDGE FINANCIAL and Ameriprise Financial

0.4

Correlation Coefficient

COREBRIDGE FINANCIAL  Ameriprise Financial

Very weak diversification

The 3 months correlation between COREBRIDGE and Ameriprise is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and COREBRIDGE 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 COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and Ameriprise Financial go up and down completely randomly.

Pair Corralation between COREBRIDGE FINANCIAL and Ameriprise Financial

Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 1.13 times more return on investment than Ameriprise Financial. However, COREBRIDGE FINANCIAL is 1.13 times more volatile than Ameriprise Financial. It trades about 0.04 of its potential returns per unit of risk. Ameriprise Financial is currently generating about -0.1 per unit of risk. If you would invest  2,877  in COREBRIDGE FINANCIAL INC on December 25, 2024 and sell it today you would earn a total of  103.00  from holding COREBRIDGE FINANCIAL INC or generate 3.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

COREBRIDGE FINANCIAL INC  vs.  Ameriprise Financial

COREBRIDGE FINANCIAL INC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COREBRIDGE FINANCIAL INC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, COREBRIDGE FINANCIAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ameriprise Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ameriprise Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with COREBRIDGE FINANCIAL and Ameriprise Financial

The main advantage of trading using opposite COREBRIDGE FINANCIAL and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC 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.

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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 Stocks Directory module to find actively traded stocks across global markets.