Correlation Between Super Retail and ANZ Group
Can any of the company-specific risk be diversified away by investing in both Super Retail 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 Super Retail and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Retail Group and ANZ Group Holdings, you can compare the effects of market volatilities on Super Retail 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 Super Retail with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and ANZ Group.
Diversification Opportunities for Super Retail and ANZ Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Super and ANZ is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail 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 Super Retail 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 Super Retail 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 Super Retail i.e., Super Retail and ANZ Group go up and down completely randomly.
Pair Corralation between Super Retail and ANZ Group
Assuming the 90 days trading horizon Super Retail Group is expected to generate 3.01 times more return on investment than ANZ Group. However, Super Retail is 3.01 times more volatile than ANZ Group Holdings. It trades about 0.09 of its potential returns per unit of risk. ANZ Group Holdings is currently generating about -0.2 per unit of risk. If you would invest 1,450 in Super Retail Group on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Super Retail Group or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. ANZ Group Holdings
Performance |
| Timeline |
| Super Retail Group |
| ANZ Group Holdings |
Super Retail and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and ANZ Group
The main advantage of trading using opposite Super Retail and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail 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.| Super Retail vs. Aneka Tambang Tbk | Super Retail vs. BHP Group Limited | Super Retail vs. Commonwealth Bank | Super Retail vs. Commonwealth Bank of |
| ANZ Group vs. Argo Investments | ANZ Group vs. Charter Hall Retail | ANZ Group vs. Navigator Global Investments | ANZ Group vs. Regal Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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