Correlation Between TBC Bank and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both TBC Bank and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on TBC Bank and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and EVS Broadcast.
Diversification Opportunities for TBC Bank and EVS Broadcast
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TBC and EVS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of TBC Bank i.e., TBC Bank and EVS Broadcast go up and down completely randomly.
Pair Corralation between TBC Bank and EVS Broadcast
Assuming the 90 days trading horizon TBC Bank is expected to generate 194.92 times less return on investment than EVS Broadcast. In addition to that, TBC Bank is 1.69 times more volatile than EVS Broadcast Equipment. It trades about 0.0 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.3 per unit of volatility. If you would invest 2,985 in EVS Broadcast Equipment on October 10, 2024 and sell it today you would earn a total of 145.00 from holding EVS Broadcast Equipment or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBC Bank Group vs. EVS Broadcast Equipment
Performance |
| Timeline |
| TBC Bank Group |
| EVS Broadcast Equipment |
TBC Bank and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBC Bank and EVS Broadcast
The main advantage of trading using opposite TBC Bank and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| TBC Bank vs. SMA Solar Technology | TBC Bank vs. Made Tech Group | TBC Bank vs. Allianz Technology Trust | TBC Bank vs. Spirent Communications plc |
| EVS Broadcast vs. Walmart | EVS Broadcast vs. BYD Co | EVS Broadcast vs. Volkswagen AG | EVS Broadcast vs. Volkswagen AG Non Vtg |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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