Correlation Between METALL ZUG and TBC Bank

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

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

Diversification Opportunities for METALL ZUG and TBC Bank

-0.12

Correlation Coefficient

METALL ZUG  TBC Bank

Good diversification

The 3 months correlation between METALL and TBC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding METALL ZUG AG 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 METALL ZUG 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 METALL ZUG AG 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 METALL ZUG i.e., METALL ZUG and TBC Bank go up and down completely randomly.

Pair Corralation between METALL ZUG and TBC Bank

Assuming the 90 days trading horizon METALL ZUG AG is expected to under-perform the TBC Bank. But the stock apears to be less risky and, when comparing its historical volatility, METALL ZUG AG is 2.08 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 0.08 of returns per unit of risk over similar time horizon. If you would invest  439,920  in TBC Bank Group on April 25, 2025 and sell it today you would earn a total of  39,580  from holding TBC Bank Group or generate 9.0% return on investment over 90 days.

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

METALL ZUG AG  vs.  TBC Bank Group

METALL ZUG AG

Risk-Adjusted Performance

Insignificant

Over the last 90 days METALL ZUG AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, METALL ZUG is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

TBC Bank Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TBC Bank Group are ranked lower than 6 (%) 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 August 2025.

Pair Trading with METALL ZUG and TBC Bank

The main advantage of trading using opposite METALL ZUG and TBC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METALL ZUG 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 METALL ZUG AG 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.