Correlation Between Bank Negara and Anzu Special

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

By analyzing existing cross correlation between Bank Negara Indonesia and Anzu Special Acquisition, you can compare the effects of market volatilities on Bank Negara and Anzu Special 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 Bank Negara with a short position of Anzu Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and Anzu Special.

Diversification Opportunities for Bank Negara and Anzu Special

-0.57

Correlation Coefficient

Bank Negara  Anzu Special

Excellent diversification

The 3 months correlation between Bank and Anzu is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and Anzu Special Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anzu Special Acquisition and Bank Negara 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 Bank Negara Indonesia are associated (or correlated) with Anzu Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anzu Special Acquisition has no effect on the direction of Bank Negara i.e., Bank Negara and Anzu Special go up and down completely randomly.

Pair Corralation between Bank Negara and Anzu Special

Assuming the 90 days horizon Bank Negara Indonesia is expected to generate 9.79 times more return on investment than Anzu Special. However, Bank Negara is 9.79 times more volatile than Anzu Special Acquisition. It trades about 0.03 of its potential returns per unit of risk. Anzu Special Acquisition is currently generating about 0.05 per unit of risk. If you would invest  1,364  in Bank Negara Indonesia on September 13, 2024 and sell it today you would earn a total of  97.00  from holding Bank Negara Indonesia or generate 7.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	29.29%
Values	Daily Returns

Bank Negara Indonesia  vs.  Anzu Special Acquisition

Bank Negara Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bank Negara Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Anzu Special Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anzu Special Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Anzu Special is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bank Negara and Anzu Special

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

The idea behind Bank Negara Indonesia and Anzu Special Acquisition 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.