Correlation Between Triller and EGain

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

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

Diversification Opportunities for Triller and EGain

-0.57

Correlation Coefficient

Triller  EGain

Excellent diversification

The 3 months correlation between Triller and EGain is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain 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 EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Triller i.e., Triller and EGain go up and down completely randomly.

Pair Corralation between Triller and EGain

Assuming the 90 days horizon Triller is expected to generate 1.75 times less return on investment than EGain. In addition to that, Triller is 2.87 times more volatile than eGain. It trades about 0.02 of its total potential returns per unit of risk. eGain is currently generating about 0.12 per unit of volatility. If you would invest  482.00  in eGain on October 3, 2024 and sell it today you would earn a total of  141.00  from holding eGain or generate 29.25% return on investment over 90 days.

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

Triller Group  vs.  eGain

Triller Group

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triller Group are ranked lower than 1 (%) 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.

eGain

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in eGain are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, EGain displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triller and EGain

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

The idea behind Triller Group and eGain 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.