Correlation Between AMCON Distributing and Triller

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

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

Diversification Opportunities for AMCON Distributing and Triller

-0.18

Correlation Coefficient

AMCON Distributing  Triller

Good diversification

The 3 months correlation between AMCON and Triller is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and Triller go up and down completely randomly.

Pair Corralation between AMCON Distributing and Triller

Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Triller. But the stock apears to be less risky and, when comparing its historical volatility, AMCON Distributing is 10.58 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	Insignificant
Accuracy	79.23%
Values	Daily Returns

AMCON Distributing  vs.  Triller Group

AMCON Distributing

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMCON Distributing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, AMCON Distributing is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 AMCON Distributing and Triller

The main advantage of trading using opposite AMCON Distributing and Triller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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 AMCON Distributing 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.