Correlation Between Triller and United Utilities

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

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

Diversification Opportunities for Triller and United Utilities

-0.25

Correlation Coefficient

Triller  United Utilities

Very good diversification

The 3 months correlation between Triller and United is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities and Triller 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 Triller Group are associated (or correlated) with United Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Utilities has no effect on the direction of Triller i.e., Triller and United Utilities go up and down completely randomly.

Pair Corralation between Triller and United Utilities

If you would invest  1,394  in United Utilities Group on October 4, 2024 and sell it today you would earn a total of  0.00  from holding United Utilities Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Triller Group  vs.  United Utilities Group

Triller Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triller Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

United Utilities

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in United Utilities Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, United Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Triller and United Utilities

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

The idea behind Triller Group and United Utilities 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.