Correlation Between Triller and ReposiTrak

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

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

Diversification Opportunities for Triller and ReposiTrak

0.4

Correlation Coefficient

Triller  ReposiTrak

Very weak diversification

The 3 months correlation between Triller and ReposiTrak is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of Triller i.e., Triller and ReposiTrak go up and down completely randomly.

Pair Corralation between Triller and ReposiTrak

Assuming the 90 days horizon Triller Group is expected to generate 6.38 times more return on investment than ReposiTrak. However, Triller is 6.38 times more volatile than ReposiTrak. It trades about 0.02 of its potential returns per unit of risk. ReposiTrak is currently generating about -0.05 per unit of risk. If you would invest  15.00  in Triller Group on December 23, 2024 and sell it today you would lose (5.00) from holding Triller Group or give up 33.33% of portfolio value over 90 days.

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

Triller Group  vs.  ReposiTrak

Triller Group

Risk-Adjusted Performance

Weak

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.

ReposiTrak

Risk-Adjusted Performance

Very Weak

Over the last 90 days ReposiTrak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Triller and ReposiTrak

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

The idea behind Triller Group and ReposiTrak 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 Anywhere module to track or share privately all of your investments from the convenience of any device.