Correlation Between Retail Food and ANZ Group
Can any of the company-specific risk be diversified away by investing in both Retail Food and ANZ Group 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 Retail Food and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Food Group and ANZ Group Holdings, you can compare the effects of market volatilities on Retail Food and ANZ Group 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 Retail Food with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Food and ANZ Group.
Diversification Opportunities for Retail Food and ANZ Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Retail and ANZ is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Retail Food Group and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings and Retail Food 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 Retail Food Group are associated (or correlated) with ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of Retail Food i.e., Retail Food and ANZ Group go up and down completely randomly.
Pair Corralation between Retail Food and ANZ Group
Assuming the 90 days trading horizon Retail Food Group is expected to generate 11.93 times more return on investment than ANZ Group. However, Retail Food is 11.93 times more volatile than ANZ Group Holdings. It trades about 0.13 of its potential returns per unit of risk. ANZ Group Holdings is currently generating about -0.08 per unit of risk. If you would invest 6.70 in Retail Food Group on August 31, 2024 and sell it today you would earn a total of 0.50 from holding Retail Food Group or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Food Group vs. ANZ Group Holdings
Performance |
| Timeline |
| Retail Food Group |
| ANZ Group Holdings |
Retail Food and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Food and ANZ Group
The main advantage of trading using opposite Retail Food and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Food position performs unexpectedly, ANZ Group 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 ANZ Group will offset losses from the drop in ANZ Group's long position.| Retail Food vs. Aurelia Metals | Retail Food vs. Ora Banda Mining | Retail Food vs. Black Rock Mining | Retail Food vs. Stelar Metals |
| ANZ Group vs. EVE Health Group | ANZ Group vs. Autosports Group | ANZ Group vs. Beston Global Food | ANZ Group vs. Queste Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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