Correlation Between Ameriprise Financial and ConocoPhillips
Can any of the company-specific risk be diversified away by investing in both Ameriprise Financial and ConocoPhillips 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 ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameriprise Financial and ConocoPhillips, you can compare the effects of market volatilities on Ameriprise Financial and ConocoPhillips 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 ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameriprise Financial and ConocoPhillips.
Diversification Opportunities for Ameriprise Financial and ConocoPhillips
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ameriprise and ConocoPhillips is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ameriprise Financial and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips 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 ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of Ameriprise Financial i.e., Ameriprise Financial and ConocoPhillips go up and down completely randomly.
Pair Corralation between Ameriprise Financial and ConocoPhillips
Considering the 90-day investment horizon Ameriprise Financial is expected to generate 0.71 times more return on investment than ConocoPhillips. However, Ameriprise Financial is 1.41 times less risky than ConocoPhillips. It trades about 0.16 of its potential returns per unit of risk. ConocoPhillips is currently generating about 0.05 per unit of risk. If you would invest 47,251 in Ameriprise Financial on April 24, 2025 and sell it today you would earn a total of 6,447 from holding Ameriprise Financial or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameriprise Financial vs. ConocoPhillips
Performance |
| Timeline |
| Ameriprise Financial |
| ConocoPhillips |
Ameriprise Financial and ConocoPhillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameriprise Financial and ConocoPhillips
The main advantage of trading using opposite Ameriprise Financial and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameriprise Financial position performs unexpectedly, ConocoPhillips 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 ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.| Ameriprise Financial vs. Northern Trust | Ameriprise Financial vs. Affiliated Managers Group | Ameriprise Financial vs. Franklin Resources | Ameriprise Financial vs. Invesco Plc |
| ConocoPhillips vs. EOG Resources | ConocoPhillips vs. Devon Energy | ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. Chevron Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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