Correlation Between Triller and Lion Financial
Can any of the company-specific risk be diversified away by investing in both Triller and Lion 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 Lion 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 Lion Financial Group, you can compare the effects of market volatilities on Triller and Lion 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 Lion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triller and Lion Financial.
Diversification Opportunities for Triller and Lion Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triller and Lion is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and Lion Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Financial Group 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 Lion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Financial Group has no effect on the direction of Triller i.e., Triller and Lion Financial go up and down completely randomly.
Pair Corralation between Triller and Lion Financial
Assuming the 90 days horizon Triller Group is expected to generate 3.81 times more return on investment than Lion Financial. However, Triller is 3.81 times more volatile than Lion Financial Group. It trades about 0.14 of its potential returns per unit of risk. Lion Financial Group is currently generating about 0.05 per unit of risk. If you would invest 16.00 in Triller Group on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Triller Group or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triller Group vs. Lion Financial Group
Performance |
| Timeline |
| Triller Group |
| Lion Financial Group |
Triller and Lion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triller and Lion Financial
The main advantage of trading using opposite Triller and Lion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triller position performs unexpectedly, Lion 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 Lion Financial will offset losses from the drop in Lion Financial's long position.| Triller vs. Raymond James Financial | Triller vs. The Charles Schwab | Triller vs. The Charles Schwab | Triller vs. BGC Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |