Correlation Between Svenska Handelsbanken and ANZ Group

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

By analyzing existing cross correlation between Svenska Handelsbanken PK and ANZ Group Holdings, you can compare the effects of market volatilities on Svenska Handelsbanken 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 Svenska Handelsbanken with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and ANZ Group.

Diversification Opportunities for Svenska Handelsbanken and ANZ Group

-0.41

Correlation Coefficient

Svenska Handelsbanken  ANZ Group

Very good diversification

The 3 months correlation between Svenska and ANZ is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken PK 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 Svenska Handelsbanken 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 Svenska Handelsbanken PK 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 Svenska Handelsbanken i.e., Svenska Handelsbanken and ANZ Group go up and down completely randomly.

Pair Corralation between Svenska Handelsbanken and ANZ Group

Assuming the 90 days horizon Svenska Handelsbanken PK is expected to under-perform the ANZ Group. In addition to that, Svenska Handelsbanken is 1.12 times more volatile than ANZ Group Holdings. It trades about -0.07 of its total potential returns per unit of risk. ANZ Group Holdings is currently generating about 0.07 per unit of volatility. If you would invest  1,889  in ANZ Group Holdings on May 7, 2025 and sell it today you would earn a total of  101.00  from holding ANZ Group Holdings or generate 5.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Svenska Handelsbanken PK  vs.  ANZ Group Holdings

Svenska Handelsbanken

Risk-Adjusted Performance

Weakest

Over the last 90 days Svenska Handelsbanken PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ANZ Group Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ANZ Group Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, ANZ Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Svenska Handelsbanken and ANZ Group

The main advantage of trading using opposite Svenska Handelsbanken and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken 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.

The idea behind Svenska Handelsbanken PK and ANZ Group Holdings 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.