Correlation Between TBC Bank and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both TBC Bank and SupplyMe Capital 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 SupplyMe Capital 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 SupplyMe Capital PLC, you can compare the effects of market volatilities on TBC Bank and SupplyMe Capital 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 SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and SupplyMe Capital.
Diversification Opportunities for TBC Bank and SupplyMe Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TBC and SupplyMe is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital 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 SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of TBC Bank i.e., TBC Bank and SupplyMe Capital go up and down completely randomly.
Pair Corralation between TBC Bank and SupplyMe Capital
Assuming the 90 days trading horizon TBC Bank is expected to generate 4.29 times less return on investment than SupplyMe Capital. But when comparing it to its historical volatility, TBC Bank Group is 6.82 times less risky than SupplyMe Capital. It trades about 0.1 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on November 6, 2024 and sell it today you would earn a total of 0.00 from holding SupplyMe Capital PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBC Bank Group vs. SupplyMe Capital PLC
Performance |
| Timeline |
| TBC Bank Group |
| SupplyMe Capital PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
TBC Bank and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBC Bank and SupplyMe Capital
The main advantage of trading using opposite TBC Bank and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBC Bank position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital'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 |
| SupplyMe Capital vs. G5 Entertainment AB | SupplyMe Capital vs. Ubisoft Entertainment | SupplyMe Capital vs. Summit Materials Cl | SupplyMe Capital vs. LBG Media 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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