Correlation Between ANZ Group and British Amer
Can any of the company-specific risk be diversified away by investing in both ANZ Group and British Amer 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 British Amer 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 Bailador Technology Invest, you can compare the effects of market volatilities on ANZ Group and British Amer 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 British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and British Amer.
Diversification Opportunities for ANZ Group and British Amer
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANZ and British is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology 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 British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of ANZ Group i.e., ANZ Group and British Amer go up and down completely randomly.
Pair Corralation between ANZ Group and British Amer
Assuming the 90 days trading horizon ANZ Group is expected to generate 1.61 times less return on investment than British Amer. But when comparing it to its historical volatility, ANZ Group Holdings is 4.5 times less risky than British Amer. It trades about 0.08 of its potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Bailador Technology Invest on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Bailador Technology Invest or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANZ Group Holdings vs. Bailador Technology Invest
Performance |
| Timeline |
| ANZ Group Holdings |
| Bailador Technology |
ANZ Group and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and British Amer
The main advantage of trading using opposite ANZ Group and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| ANZ Group vs. WiseTech Global Limited | ANZ Group vs. Dug Technology | ANZ Group vs. Advanced Braking Technology | ANZ Group vs. Group 6 Metals |
| British Amer vs. Skycity Entertainment Group | British Amer vs. Champion Iron | British Amer vs. TPG Telecom | British Amer vs. Autosports Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |