Correlation Between ANZ Group and Immuron

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Can any of the company-specific risk be diversified away by investing in both ANZ Group and Immuron 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 Immuron 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 Immuron, you can compare the effects of market volatilities on ANZ Group and Immuron 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 Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and Immuron.

Diversification Opportunities for ANZ Group and Immuron

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ANZ and Immuron is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron 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 Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron has no effect on the direction of ANZ Group i.e., ANZ Group and Immuron go up and down completely randomly.

Pair Corralation between ANZ Group and Immuron

Assuming the 90 days trading horizon ANZ Group is expected to generate 23.05 times less return on investment than Immuron. But when comparing it to its historical volatility, ANZ Group Holdings is 30.26 times less risky than Immuron. It trades about 0.06 of its potential returns per unit of risk. Immuron is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  6.60  in Immuron on September 1, 2024 and sell it today you would earn a total of  1.10  from holding Immuron or generate 16.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.48%
ValuesDaily Returns

ANZ Group Holdings  vs.  Immuron

 Performance 
       Timeline  
ANZ Group Holdings 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ANZ Group Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ANZ Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Immuron 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Immuron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ANZ Group and Immuron Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ANZ Group and Immuron

The main advantage of trading using opposite ANZ Group and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, Immuron 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 Immuron will offset losses from the drop in Immuron's long position.
The idea behind ANZ Group Holdings and Immuron 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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