AMERIPRISE FINANCIAL INC

108.66 -1.51 (-1.39%) Sell

AMP investors dump it for better alternatives

13 min read

AMERIPRISE FINANCIAL INC significantly underperformed on Monday. It lost -1.39% to close at 108.66 which is it's 52 week low, down -40% from it's 52 week high.

[Themes containing AMP]

Buy-and-Hold investors in AMP experienced a maximum drawdown of -28.5% over the last three months. It lost -26.79% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +12.76%.

Trend

AMP has been underperforming the SP500 index in recent time, after having outperformed till 12 Jan, 2018. Over the last 2 years 11 months and 10 days, AMP underperformed the SP500 index on 48% days. Which indicates that on days AMP underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months AMP was mostly loss making and delivered on average -0.48% per day. It's best return during this period (of +4.88%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -7.35%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +6.28% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -15.6% of investor capital.

AMP had 4 profitable and 8 loss making months over the last year. During the last year, AMP underperformed SP500 index on monthly return basis. AMP was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -15.08% compared to -7.28% returned by SP500 index in Oct 2018. AMP had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -16.26%. It is interesting to note that both AMP and SP500 index significantly outperform during months when quarterly/annual results are announced.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

AMP is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AMP's volatility from 24 Sep, 2018 to 10 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AMP has significant positive skewness in it's return distribution. This indicates that investors can expect AMP to recover from drawdowns quickly. Which makes AMP a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than AMP. Therefore, SP500 must receive a lower allocation than AMP in your portfolio. SP500 index usually has shorter drawdown period than AMP.

Based on your interest in AMP you may find it interesting to know that AMD is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter