Correlation Between Cboe UK and TBC Bank
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By analyzing existing cross correlation between Cboe UK Consumer and TBC Bank Group, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of TBC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and TBC Bank.
Diversification Opportunities for Cboe UK and TBC Bank
Very weak diversification
The 3 months correlation between Cboe and TBC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and TBC Bank go up and down completely randomly.
Pair Corralation between Cboe UK and TBC Bank
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.35 times more return on investment than TBC Bank. However, Cboe UK Consumer is 2.86 times less risky than TBC Bank. It trades about 0.25 of its potential returns per unit of risk. TBC Bank Group is currently generating about 0.06 per unit of risk. If you would invest 3,196,706 in Cboe UK Consumer on October 24, 2024 and sell it today you would earn a total of 84,771 from holding Cboe UK Consumer or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. TBC Bank Group
Performance |
| Timeline |
Cboe UK and TBC Bank Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
TBC Bank Group
Pair trading matchups for TBC Bank
Pair Trading with Cboe UK and TBC Bank
The main advantage of trading using opposite Cboe UK and TBC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. DFS Furniture PLC | Cboe UK vs. Hollywood Bowl Group | Cboe UK vs. Beazer Homes USA | Cboe UK vs. Prosiebensat 1 Media |
| TBC Bank vs. Cardinal Health | TBC Bank vs. Naturhouse Health SA | TBC Bank vs. Primary Health Properties | TBC Bank vs. Gamma Communications PLC |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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