Correlation Between Hawesko Holding and Ameriprise Financial

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

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

Diversification Opportunities for Hawesko Holding and Ameriprise Financial

-0.57

Correlation Coefficient

Hawesko Holding  Ameriprise Financial

Excellent diversification

The 3 months correlation between Hawesko and Ameriprise is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hawesko Holding AG and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Hawesko Holding 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 Hawesko Holding AG 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 Hawesko Holding i.e., Hawesko Holding and Ameriprise Financial go up and down completely randomly.

Pair Corralation between Hawesko Holding and Ameriprise Financial

Assuming the 90 days trading horizon Hawesko Holding AG is expected to generate 1.51 times more return on investment than Ameriprise Financial. However, Hawesko Holding is 1.51 times more volatile than Ameriprise Financial. It trades about 0.1 of its potential returns per unit of risk. Ameriprise Financial is currently generating about 0.11 per unit of risk. If you would invest  2,350  in Hawesko Holding AG on October 6, 2024 and sell it today you would earn a total of  280.00  from holding Hawesko Holding AG or generate 11.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.5%
Values	Daily Returns

Hawesko Holding AG  vs.  Ameriprise Financial

Hawesko Holding AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hawesko Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hawesko Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Ameriprise Financial

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ameriprise Financial are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Ameriprise Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hawesko Holding and Ameriprise Financial

The main advantage of trading using opposite Hawesko Holding and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawesko Holding 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 Hawesko Holding AG 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..