Correlation Between TTG Fintech and ANZ Group
Can any of the company-specific risk be diversified away by investing in both TTG Fintech 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 TTG Fintech and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTG Fintech and ANZ Group Holdings, you can compare the effects of market volatilities on TTG Fintech 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 TTG Fintech with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTG Fintech and ANZ Group.
Diversification Opportunities for TTG Fintech and ANZ Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TTG and ANZ is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding TTG Fintech 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 TTG Fintech 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 TTG Fintech 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 TTG Fintech i.e., TTG Fintech and ANZ Group go up and down completely randomly.
Pair Corralation between TTG Fintech and ANZ Group
Assuming the 90 days trading horizon TTG Fintech is expected to generate 98.96 times more return on investment than ANZ Group. However, TTG Fintech is 98.96 times more volatile than ANZ Group Holdings. It trades about 0.15 of its potential returns per unit of risk. ANZ Group Holdings is currently generating about 0.36 per unit of risk. If you would invest 0.60 in TTG Fintech on December 2, 2024 and sell it today you would earn a total of 0.20 from holding TTG Fintech or generate 33.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TTG Fintech vs. ANZ Group Holdings
Performance |
Timeline |
TTG Fintech |
ANZ Group Holdings |
TTG Fintech and ANZ Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TTG Fintech and ANZ Group
The main advantage of trading using opposite TTG Fintech and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTG Fintech 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.TTG Fintech vs. Flagship Investments | TTG Fintech vs. Apiam Animal Health | TTG Fintech vs. Oneview Healthcare PLC | TTG Fintech vs. A1 Investments Resources |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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