Correlation Between ANZ Group and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both ANZ Group and Agricultural Bank 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 Agricultural Bank 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 Agricultural Bank, you can compare the effects of market volatilities on ANZ Group and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and Agricultural Bank.
Diversification Opportunities for ANZ Group and Agricultural Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANZ and Agricultural is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and Agricultural Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of ANZ Group i.e., ANZ Group and Agricultural Bank go up and down completely randomly.
Pair Corralation between ANZ Group and Agricultural Bank
If you would invest 1,638 in ANZ Group Holdings on November 4, 2024 and sell it today you would earn a total of 0.00 from holding ANZ Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
ANZ Group Holdings vs. Agricultural Bank
Performance |
| Timeline |
| ANZ Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Agricultural Bank |
ANZ Group and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and Agricultural Bank
The main advantage of trading using opposite ANZ Group and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| ANZ Group vs. Braemar Hotels Resorts | ANZ Group vs. Copa Holdings SA | ANZ Group vs. SkyWest | ANZ Group vs. Dine Brands Global |
| Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. National Australia Bank | Agricultural Bank vs. Svenska Handelsbanken AB | Agricultural Bank vs. Bank of America |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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