Correlation Between TBC Bank and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both TBC Bank and Mulberry Group 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 Mulberry Group 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 Mulberry Group PLC, you can compare the effects of market volatilities on TBC Bank and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and Mulberry Group.
Diversification Opportunities for TBC Bank and Mulberry Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TBC and Mulberry is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group PLC 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of TBC Bank i.e., TBC Bank and Mulberry Group go up and down completely randomly.
Pair Corralation between TBC Bank and Mulberry Group
Assuming the 90 days trading horizon TBC Bank Group is expected to generate 1.06 times more return on investment than Mulberry Group. However, TBC Bank is 1.06 times more volatile than Mulberry Group PLC. It trades about 0.19 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.35 per unit of risk. If you would invest 311,500 in TBC Bank Group on November 3, 2024 and sell it today you would earn a total of 22,500 from holding TBC Bank Group or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TBC Bank Group vs. Mulberry Group PLC
Performance |
| Timeline |
| TBC Bank Group |
| Mulberry Group PLC |
TBC Bank and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBC Bank and Mulberry Group
The main advantage of trading using opposite TBC Bank and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| TBC Bank vs. Flow Traders NV | TBC Bank vs. Zoom Video Communications | TBC Bank vs. Cairo Communication SpA | TBC Bank vs. Scandinavian Tobacco Group |
| Mulberry Group vs. Axway Software SA | Mulberry Group vs. JD Sports Fashion | Mulberry Group vs. Alfa Financial Software | Mulberry Group vs. Travel Leisure 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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