Correlation Between Bhiraj Office and TMC Industrial

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

By analyzing existing cross correlation between Bhiraj Office Leasehold and TMC Industrial Public, you can compare the effects of market volatilities on Bhiraj Office and TMC Industrial 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 Bhiraj Office with a short position of TMC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhiraj Office and TMC Industrial.

Diversification Opportunities for Bhiraj Office and TMC Industrial

0.45

Correlation Coefficient

Bhiraj Office  TMC Industrial

Very weak diversification

The 3 months correlation between Bhiraj and TMC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bhiraj Office Leasehold and TMC Industrial Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMC Industrial Public and Bhiraj Office 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 Bhiraj Office Leasehold are associated (or correlated) with TMC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMC Industrial Public has no effect on the direction of Bhiraj Office i.e., Bhiraj Office and TMC Industrial go up and down completely randomly.

Pair Corralation between Bhiraj Office and TMC Industrial

Assuming the 90 days trading horizon Bhiraj Office is expected to generate 2.13 times less return on investment than TMC Industrial. But when comparing it to its historical volatility, Bhiraj Office Leasehold is 2.27 times less risky than TMC Industrial. It trades about 0.08 of its potential returns per unit of risk. TMC Industrial Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  69.00  in TMC Industrial Public on December 29, 2024 and sell it today you would earn a total of  2.00  from holding TMC Industrial Public or generate 2.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bhiraj Office Leasehold  vs.  TMC Industrial Public

Bhiraj Office Leasehold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bhiraj Office Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

TMC Industrial Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days TMC Industrial Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Bhiraj Office and TMC Industrial

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

The idea behind Bhiraj Office Leasehold and TMC Industrial Public 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.