Correlation Between Advanced Medical and TBC Bank
Can any of the company-specific risk be diversified away by investing in both Advanced Medical and TBC Bank 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 Advanced Medical and TBC Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Medical Solutions and TBC Bank Group, you can compare the effects of market volatilities on Advanced Medical and TBC Bank 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 Advanced Medical with a short position of TBC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and TBC Bank.
Diversification Opportunities for Advanced Medical and TBC Bank
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and TBC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and TBC Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBC Bank Group and Advanced Medical 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 Advanced Medical Solutions are associated (or correlated) with TBC Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBC Bank Group has no effect on the direction of Advanced Medical i.e., Advanced Medical and TBC Bank go up and down completely randomly.
Pair Corralation between Advanced Medical and TBC Bank
Assuming the 90 days trading horizon Advanced Medical Solutions is expected to under-perform the TBC Bank. In addition to that, Advanced Medical is 2.19 times more volatile than TBC Bank Group. It trades about -0.01 of its total potential returns per unit of risk. TBC Bank Group is currently generating about 0.09 per unit of volatility. If you would invest 303,000 in TBC Bank Group on October 30, 2024 and sell it today you would earn a total of 14,500 from holding TBC Bank Group or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Medical Solutions vs. TBC Bank Group
Performance |
| Timeline |
| Advanced Medical Sol |
| TBC Bank Group |
Advanced Medical and TBC Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Medical and TBC Bank
The main advantage of trading using opposite Advanced Medical and TBC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical position performs unexpectedly, TBC Bank 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 TBC Bank will offset losses from the drop in TBC Bank's long position.| Advanced Medical vs. Ryanair Holdings plc | Advanced Medical vs. Fair Oaks Income | Advanced Medical vs. TBC Bank Group | Advanced Medical vs. Wizz Air Holdings |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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