Correlation Between Digi International and Triller

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

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

Diversification Opportunities for Digi International and Triller

-0.47

Correlation Coefficient

Digi International  Triller

Very good diversification

The 3 months correlation between Digi and Triller is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group and Digi International 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 Digi International are associated (or correlated) with Triller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triller Group has no effect on the direction of Digi International i.e., Digi International and Triller go up and down completely randomly.

Pair Corralation between Digi International and Triller

Given the investment horizon of 90 days Digi International is expected to under-perform the Triller. But the stock apears to be less risky and, when comparing its historical volatility, Digi International is 12.93 times less risky than Triller. The stock trades about 0.0 of its potential returns per unit of risk. The Triller Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Triller Group on October 4, 2024 and sell it today you would earn a total of  10.00  from holding Triller Group or generate 90.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	78.43%
Values	Daily Returns

Digi International  vs.  Triller Group

Digi International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Digi International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Digi International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Triller Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Triller Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Triller showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Digi International and Triller

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

The idea behind Digi International and Triller 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.