Correlation Between Tissue Regenix and TBC Bank

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

By analyzing existing cross correlation between Tissue Regenix Group and TBC Bank Group, you can compare the effects of market volatilities on Tissue Regenix and TBC Bank 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 Tissue Regenix with a short position of TBC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tissue Regenix and TBC Bank.

Diversification Opportunities for Tissue Regenix and TBC Bank

0.33

Correlation Coefficient

Tissue Regenix  TBC Bank

Weak diversification

The 3 months correlation between Tissue and TBC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tissue Regenix Group and TBC Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBC Bank Group and Tissue Regenix 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 Tissue Regenix Group are associated (or correlated) with TBC Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBC Bank Group has no effect on the direction of Tissue Regenix i.e., Tissue Regenix and TBC Bank go up and down completely randomly.

Pair Corralation between Tissue Regenix and TBC Bank

Assuming the 90 days trading horizon Tissue Regenix Group is expected to under-perform the TBC Bank. But the stock apears to be less risky and, when comparing its historical volatility, Tissue Regenix Group is 1.63 times less risky than TBC Bank. The stock trades about 0.0 of its potential returns per unit of risk. The TBC Bank Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  297,656  in TBC Bank Group on October 25, 2024 and sell it today you would earn a total of  16,344  from holding TBC Bank Group or generate 5.49% return on investment over 90 days.

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

Tissue Regenix Group  vs.  TBC Bank Group

Tissue Regenix Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tissue Regenix Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Tissue Regenix may actually be approaching a critical reversion point that can send shares even higher in February 2025.

TBC Bank Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TBC Bank Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TBC Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Tissue Regenix and TBC Bank

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

The idea behind Tissue Regenix Group and TBC Bank Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.