Correlation Between ANZ Group and Group 6
Can any of the company-specific risk be diversified away by investing in both ANZ Group and Group 6 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 Group 6 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 Group 6 Metals, you can compare the effects of market volatilities on ANZ Group and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and Group 6.
Diversification Opportunities for ANZ Group and Group 6
Excellent diversification
The 3 months correlation between ANZ and Group is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of ANZ Group i.e., ANZ Group and Group 6 go up and down completely randomly.
Pair Corralation between ANZ Group and Group 6
If you would invest 10,300 in ANZ Group Holdings on August 30, 2024 and sell it today you would earn a total of 78.00 from holding ANZ Group Holdings or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANZ Group Holdings vs. Group 6 Metals
Performance |
| Timeline |
| ANZ Group Holdings |
| Group 6 Metals |
ANZ Group and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and Group 6
The main advantage of trading using opposite ANZ Group and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| ANZ Group vs. Clime Investment Management | ANZ Group vs. Regal Investment | ANZ Group vs. Embark Education Group | ANZ Group vs. IDP Education |
| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. Sandfire Resources NL |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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