Correlation Between Bonny Worldwide and TCI

Can any of the company-specific risk be diversified away by investing in both Bonny Worldwide and TCI 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 Bonny Worldwide and TCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bonny Worldwide and TCI Co, you can compare the effects of market volatilities on Bonny Worldwide and TCI 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 Bonny Worldwide with a short position of TCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonny Worldwide and TCI.

Diversification Opportunities for Bonny Worldwide and TCI

0.0

Correlation Coefficient

Bonny Worldwide  TCI

Pay attention - limited upside

The 3 months correlation between Bonny and TCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bonny Worldwide and TCI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCI Co and Bonny Worldwide 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 Bonny Worldwide are associated (or correlated) with TCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCI Co has no effect on the direction of Bonny Worldwide i.e., Bonny Worldwide and TCI go up and down completely randomly.

Pair Corralation between Bonny Worldwide and TCI

If you would invest  12,300  in TCI Co on December 29, 2024 and sell it today you would earn a total of  2,700  from holding TCI Co or generate 21.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.79%
Values	Daily Returns

Bonny Worldwide  vs.  TCI Co

Bonny Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bonny Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bonny Worldwide is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

TCI Co

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TCI Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, TCI showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bonny Worldwide and TCI

The main advantage of trading using opposite Bonny Worldwide and TCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonny Worldwide position performs unexpectedly, TCI 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 TCI will offset losses from the drop in TCI's long position.

The idea behind Bonny Worldwide and TCI Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.