Correlation Between Aldel Financial and ANZNZ

Can any of the company-specific risk be diversified away by investing in both Aldel Financial and ANZNZ 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 Aldel Financial and ANZNZ into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aldel Financial II and ANZNZ 5175122 18 FEB 25, you can compare the effects of market volatilities on Aldel Financial and ANZNZ 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 Aldel Financial with a short position of ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and ANZNZ.

Diversification Opportunities for Aldel Financial and ANZNZ

0.12

Correlation Coefficient

Aldel Financial  ANZNZ

Average diversification

The 3 months correlation between Aldel and ANZNZ is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and ANZNZ 5175122 18 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 5175122 18 and Aldel Financial 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 Aldel Financial II are associated (or correlated) with ANZNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZNZ 5175122 18 has no effect on the direction of Aldel Financial i.e., Aldel Financial and ANZNZ go up and down completely randomly.

Pair Corralation between Aldel Financial and ANZNZ

Given the investment horizon of 90 days Aldel Financial II is expected to generate 0.27 times more return on investment than ANZNZ. However, Aldel Financial II is 3.67 times less risky than ANZNZ. It trades about 0.26 of its potential returns per unit of risk. ANZNZ 5175122 18 FEB 25 is currently generating about 0.02 per unit of risk. If you would invest  990.00  in Aldel Financial II on October 25, 2024 and sell it today you would earn a total of  7.00  from holding Aldel Financial II or generate 0.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	68.0%
Values	Daily Returns

Aldel Financial II  vs.  ANZNZ 5175122 18 FEB 25

Aldel Financial II

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aldel Financial II are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Aldel Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

ANZNZ 5175122 18

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANZNZ 5175122 18 FEB 25 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ANZNZ is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aldel Financial and ANZNZ

The main advantage of trading using opposite Aldel Financial and ANZNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, ANZNZ 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 ANZNZ will offset losses from the drop in ANZNZ's long position.

The idea behind Aldel Financial II and ANZNZ 5175122 18 FEB 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.