Correlation Between ANZ Group and Imugene
Can any of the company-specific risk be diversified away by investing in both ANZ Group and Imugene 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 Imugene 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 Imugene, you can compare the effects of market volatilities on ANZ Group and Imugene 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 Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and Imugene.
Diversification Opportunities for ANZ Group and Imugene
Pay attention - limited upside
The 3 months correlation between ANZ and Imugene is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene 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 Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of ANZ Group i.e., ANZ Group and Imugene go up and down completely randomly.
Pair Corralation between ANZ Group and Imugene
Assuming the 90 days trading horizon ANZ Group Holdings is expected to generate 0.05 times more return on investment than Imugene. However, ANZ Group Holdings is 18.46 times less risky than Imugene. It trades about 0.06 of its potential returns per unit of risk. Imugene is currently generating about -0.03 per unit of risk. If you would invest 9,558 in ANZ Group Holdings on August 30, 2024 and sell it today you would earn a total of 780.00 from holding ANZ Group Holdings or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANZ Group Holdings vs. Imugene
Performance |
| Timeline |
| ANZ Group Holdings |
| Imugene |
ANZ Group and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and Imugene
The main advantage of trading using opposite ANZ Group and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene's long position.| ANZ Group vs. Ramsay Health Care | ANZ Group vs. BTC Health Limited | ANZ Group vs. Aurelia Metals | ANZ Group vs. Stelar Metals |
| Imugene vs. Westpac Banking | Imugene vs. Hutchison Telecommunications | Imugene vs. Kkr Credit Income | Imugene 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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