Correlation Between Triller and Under Armour

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

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

Diversification Opportunities for Triller and Under Armour

-0.51

Correlation Coefficient

Triller  Under Armour

Excellent diversification

The 3 months correlation between Triller and Under is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Triller Group and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Triller i.e., Triller and Under Armour go up and down completely randomly.

Pair Corralation between Triller and Under Armour

Assuming the 90 days horizon Triller is expected to generate 1.89 times less return on investment than Under Armour. In addition to that, Triller is 3.42 times more volatile than Under Armour C. It trades about 0.01 of its total potential returns per unit of risk. Under Armour C is currently generating about 0.09 per unit of volatility. If you would invest  724.00  in Under Armour C on September 13, 2024 and sell it today you would earn a total of  147.00  from holding Under Armour C or generate 20.3% 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.  Under Armour C

Triller Group

Risk-Adjusted Performance

1 of 100

Very 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 may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Under Armour C

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Under Armour C are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Under Armour sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triller and Under Armour

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

The idea behind Triller Group and Under Armour C 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.