Correlation Between Newell Brands and ANZNZ

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

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

Diversification Opportunities for Newell Brands and ANZNZ

0.0

Correlation Coefficient

Newell Brands  ANZNZ

Pay attention - limited upside

The 3 months correlation between Newell and ANZNZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands 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 Newell Brands 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 Newell Brands 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 Newell Brands i.e., Newell Brands and ANZNZ go up and down completely randomly.

Pair Corralation between Newell Brands and ANZNZ

If you would invest (100.00) in ANZNZ 125 22 JUN 26 on December 22, 2024 and sell it today you would earn a total of  100.00  from holding ANZNZ 125 22 JUN 26 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Newell Brands  vs.  ANZNZ 125 22 JUN 26

Newell Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Newell Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

ANZNZ 125 22

Risk-Adjusted Performance

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Newell Brands and ANZNZ

The main advantage of trading using opposite Newell Brands and ANZNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands 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 Newell Brands 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.