Correlation Between ANZ Group and Parkd
Can any of the company-specific risk be diversified away by investing in both ANZ Group and Parkd 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 ANZ Group and Parkd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANZ Group Holdings and Parkd, you can compare the effects of market volatilities on ANZ Group and Parkd 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 ANZ Group with a short position of Parkd. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and Parkd.
Diversification Opportunities for ANZ Group and Parkd
Modest diversification
The 3 months correlation between ANZ and Parkd is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Parkd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkd and ANZ Group 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 ANZ Group Holdings are associated (or correlated) with Parkd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkd has no effect on the direction of ANZ Group i.e., ANZ Group and Parkd go up and down completely randomly.
Pair Corralation between ANZ Group and Parkd
Assuming the 90 days trading horizon ANZ Group Holdings is expected to generate 0.16 times more return on investment than Parkd. However, ANZ Group Holdings is 6.12 times less risky than Parkd. It trades about -0.08 of its potential returns per unit of risk. Parkd is currently generating about -0.18 per unit of risk. If you would invest 10,390 in ANZ Group Holdings on September 12, 2024 and sell it today you would lose (94.00) from holding ANZ Group Holdings or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANZ Group Holdings vs. Parkd
Performance |
| Timeline |
| ANZ Group Holdings |
| Parkd |
ANZ Group and Parkd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and Parkd
The main advantage of trading using opposite ANZ Group and Parkd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, Parkd 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 Parkd will offset losses from the drop in Parkd's long position.| ANZ Group vs. Aeris Environmental | ANZ Group vs. Bluescope Steel | ANZ Group vs. BKI Investment | ANZ Group vs. Flagship Investments |
| Parkd vs. Carnegie Clean Energy | Parkd vs. Australian Unity Office | Parkd vs. Charter Hall Retail | Parkd vs. Aristocrat Leisure |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |