Correlation Between ANZ Group and China Construction
Can any of the company-specific risk be diversified away by investing in both ANZ Group and China Construction 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 China Construction 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 China Construction Bank, you can compare the effects of market volatilities on ANZ Group and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANZ Group and China Construction.
Diversification Opportunities for ANZ Group and China Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANZ and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANZ Group Holdings and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of ANZ Group i.e., ANZ Group and China Construction go up and down completely randomly.
Pair Corralation between ANZ Group and China Construction
If you would invest 1,051 in China Construction Bank on September 4, 2024 and sell it today you would earn a total of 463.00 from holding China Construction Bank or generate 44.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
ANZ Group Holdings vs. China Construction Bank
Performance |
| Timeline |
| ANZ Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Construction Bank |
ANZ Group and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANZ Group and China Construction
The main advantage of trading using opposite ANZ Group and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANZ Group position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| ANZ Group vs. Archrock | ANZ Group vs. Vistra Energy Corp | ANZ Group vs. Elmos Semiconductor SE | ANZ Group vs. Kenon Holdings |
| China Construction vs. Bank of China | China Construction vs. Industrial and Commercial | China Construction vs. China Construction Bank | China Construction 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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