Correlation Between TBC Bank and Zoom Video
Can any of the company-specific risk be diversified away by investing in both TBC Bank and Zoom Video 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 TBC Bank and Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TBC Bank Group and Zoom Video Communications, you can compare the effects of market volatilities on TBC Bank and Zoom Video 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 TBC Bank with a short position of Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and Zoom Video.
Diversification Opportunities for TBC Bank and Zoom Video
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TBC and Zoom is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications and TBC Bank 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 TBC Bank Group are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of TBC Bank i.e., TBC Bank and Zoom Video go up and down completely randomly.
Pair Corralation between TBC Bank and Zoom Video
Assuming the 90 days trading horizon TBC Bank is expected to generate 1.26 times less return on investment than Zoom Video. But when comparing it to its historical volatility, TBC Bank Group is 1.27 times less risky than Zoom Video. It trades about 0.08 of its potential returns per unit of risk. Zoom Video Communications is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,993 in Zoom Video Communications on November 7, 2024 and sell it today you would earn a total of 820.00 from holding Zoom Video Communications or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBC Bank Group vs. Zoom Video Communications
Performance |
| Timeline |
| TBC Bank Group |
| Zoom Video Communications |
TBC Bank and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBC Bank and Zoom Video
The main advantage of trading using opposite TBC Bank and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| TBC Bank vs. Learning Technologies Group | TBC Bank vs. Diversified Energy | TBC Bank vs. EJF Investments | TBC Bank vs. Infineon Technologies AG |
| Zoom Video vs. Xeros Technology Group | Zoom Video vs. Allianz Technology Trust | Zoom Video vs. Heavitree Brewery | Zoom Video vs. DXC Technology Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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