Correlation Between Triller and Stifel Financial

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

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

Diversification Opportunities for Triller and Stifel Financial

-0.33

Correlation Coefficient

Triller  Stifel Financial

Very good diversification

The 3 months correlation between Triller and Stifel is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp 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 Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of Triller i.e., Triller and Stifel Financial go up and down completely randomly.

Pair Corralation between Triller and Stifel Financial

Assuming the 90 days horizon Triller Group is expected to generate 20.89 times more return on investment than Stifel Financial. However, Triller is 20.89 times more volatile than Stifel Financial Corp. It trades about 0.03 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.03 per unit of risk. If you would invest  18.00  in Triller Group on November 28, 2024 and sell it today you would lose (5.00) from holding Triller Group or give up 27.78% of portfolio value over 90 days.

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

Triller Group  vs.  Stifel Financial Corp

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.

Stifel Financial Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stifel Financial Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Stifel Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Triller and Stifel Financial

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

The idea behind Triller Group and Stifel Financial Corp 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.