Correlation Between Xiabuxiabu Catering and Ameriprise Financial

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

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

Diversification Opportunities for Xiabuxiabu Catering and Ameriprise Financial

-0.06

Correlation Coefficient

Xiabuxiabu Catering  Ameriprise Financial

Good diversification

The 3 months correlation between Xiabuxiabu and Ameriprise is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Ameriprise Financial go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and Ameriprise Financial

Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to under-perform the Ameriprise Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Xiabuxiabu Catering Management is 1.0 times less risky than Ameriprise Financial. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Ameriprise Financial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  52,111  in Ameriprise Financial on October 20, 2024 and sell it today you would earn a total of  3,108  from holding Ameriprise Financial or generate 5.96% return on investment over 90 days.

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

Xiabuxiabu Catering Management  vs.  Ameriprise Financial

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ameriprise Financial

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ameriprise Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, Ameriprise Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Xiabuxiabu Catering and Ameriprise Financial

The main advantage of trading using opposite Xiabuxiabu Catering and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.