Correlation Between Global E and ANZNZ

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

By analyzing existing cross correlation between Global E Online and ANZNZ 125 22 JUN 26, you can compare the effects of market volatilities on Global E 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 Global E with a short position of ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and ANZNZ.

Diversification Opportunities for Global E and ANZNZ

0.19

Correlation Coefficient

Global E  ANZNZ

Average diversification

The 3 months correlation between Global and ANZNZ is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and ANZNZ 125 22 JUN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 125 22 and Global E 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 Global E Online 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 125 22 has no effect on the direction of Global E i.e., Global E and ANZNZ go up and down completely randomly.

Pair Corralation between Global E and ANZNZ

Given the investment horizon of 90 days Global E Online is expected to generate 3.51 times more return on investment than ANZNZ. However, Global E is 3.51 times more volatile than ANZNZ 125 22 JUN 26. It trades about 0.15 of its potential returns per unit of risk. ANZNZ 125 22 JUN 26 is currently generating about 0.06 per unit of risk. If you would invest  3,633  in Global E Online on September 30, 2024 and sell it today you would earn a total of  1,868  from holding Global E Online or generate 51.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	53.97%
Values	Daily Returns

Global E Online  vs.  ANZNZ 125 22 JUN 26

Global E Online

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global E Online are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Global E exhibited solid returns over the last few months and may actually be approaching a breakup point.

ANZNZ 125 22

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZNZ 125 22 JUN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ANZNZ is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Global E and ANZNZ

The main advantage of trading using opposite Global E and ANZNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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 Global E Online and ANZNZ 125 22 JUN 26 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.