Correlation Between Triller and Affiliated Managers

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

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

Diversification Opportunities for Triller and Affiliated Managers

-0.29

Correlation Coefficient

Triller  Affiliated Managers

Very good diversification

The 3 months correlation between Triller and Affiliated is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and Affiliated Managers Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers 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 Affiliated Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Managers has no effect on the direction of Triller i.e., Triller and Affiliated Managers go up and down completely randomly.

Pair Corralation between Triller and Affiliated Managers

Assuming the 90 days horizon Triller Group is expected to generate 22.59 times more return on investment than Affiliated Managers. However, Triller is 22.59 times more volatile than Affiliated Managers Group,. It trades about 0.03 of its potential returns per unit of risk. Affiliated Managers Group, is currently generating about -0.02 per unit of risk. If you would invest  14.00  in Triller Group on December 30, 2024 and sell it today you would lose (4.16) from holding Triller Group or give up 29.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Triller Group  vs.  Affiliated Managers Group,

Triller Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Triller Group are ranked lower than 2 (%) 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.

Affiliated Managers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Affiliated Managers Group, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Affiliated Managers is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Triller and Affiliated Managers

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

The idea behind Triller Group and Affiliated Managers 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.