Correlation Between TBC Bank and BlackRock Frontiers
Can any of the company-specific risk be diversified away by investing in both TBC Bank and BlackRock Frontiers 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 BlackRock Frontiers 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 BlackRock Frontiers Investment, you can compare the effects of market volatilities on TBC Bank and BlackRock Frontiers 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 BlackRock Frontiers. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and BlackRock Frontiers.
Diversification Opportunities for TBC Bank and BlackRock Frontiers
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TBC and BlackRock is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and BlackRock Frontiers Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Frontiers 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 BlackRock Frontiers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Frontiers has no effect on the direction of TBC Bank i.e., TBC Bank and BlackRock Frontiers go up and down completely randomly.
Pair Corralation between TBC Bank and BlackRock Frontiers
Assuming the 90 days trading horizon TBC Bank Group is expected to generate 1.28 times more return on investment than BlackRock Frontiers. However, TBC Bank is 1.28 times more volatile than BlackRock Frontiers Investment. It trades about 0.17 of its potential returns per unit of risk. BlackRock Frontiers Investment is currently generating about 0.08 per unit of risk. If you would invest 305,500 in TBC Bank Group on October 28, 2024 and sell it today you would earn a total of 14,500 from holding TBC Bank Group or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBC Bank Group vs. BlackRock Frontiers Investment
Performance |
| Timeline |
| TBC Bank Group |
| BlackRock Frontiers |
TBC Bank and BlackRock Frontiers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBC Bank and BlackRock Frontiers
The main advantage of trading using opposite TBC Bank and BlackRock Frontiers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank position performs unexpectedly, BlackRock Frontiers 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 BlackRock Frontiers will offset losses from the drop in BlackRock Frontiers' long position.| TBC Bank vs. Premier Foods PLC | TBC Bank vs. Waste Management | TBC Bank vs. Check Point Software | TBC Bank vs. Ebro Foods |
| BlackRock Frontiers vs. Spirent Communications plc | BlackRock Frontiers vs. Optima Health plc | BlackRock Frontiers vs. Charter Communications Cl | BlackRock Frontiers vs. Batm Advanced Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets |