Correlation Between TBC Bank and Mobius Investment

Can any of the company-specific risk be diversified away by investing in both TBC Bank and Mobius Investment 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 Mobius Investment 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 Mobius Investment Trust, you can compare the effects of market volatilities on TBC Bank and Mobius Investment 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 Mobius Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBC Bank and Mobius Investment.

Diversification Opportunities for TBC Bank and Mobius Investment

0.7

Correlation Coefficient

TBC Bank  Mobius Investment

Poor diversification

The 3 months correlation between TBC and Mobius is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding TBC Bank Group and Mobius Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobius Investment Trust 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 Mobius Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobius Investment Trust has no effect on the direction of TBC Bank i.e., TBC Bank and Mobius Investment go up and down completely randomly.

Pair Corralation between TBC Bank and Mobius Investment

Assuming the 90 days trading horizon TBC Bank is expected to generate 1.05 times less return on investment than Mobius Investment. In addition to that, TBC Bank is 2.03 times more volatile than Mobius Investment Trust. It trades about 0.13 of its total potential returns per unit of risk. Mobius Investment Trust is currently generating about 0.27 per unit of volatility. If you would invest  11,885  in Mobius Investment Trust on April 20, 2025 and sell it today you would earn a total of  2,165  from holding Mobius Investment Trust or generate 18.22% return on investment over 90 days.

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

TBC Bank Group  vs.  Mobius Investment Trust

TBC Bank Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TBC Bank Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TBC Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mobius Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mobius Investment Trust are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mobius Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TBC Bank and Mobius Investment

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

The idea behind TBC Bank Group and Mobius Investment Trust 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.