Correlation Between Mercurity Fintech and Triller

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

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

Diversification Opportunities for Mercurity Fintech and Triller

-0.26

Correlation Coefficient

Mercurity Fintech  Triller

Very good diversification

The 3 months correlation between Mercurity and Triller is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with Triller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triller Group has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Triller go up and down completely randomly.

Pair Corralation between Mercurity Fintech and Triller

Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 1.37 times more return on investment than Triller. However, Mercurity Fintech is 1.37 times more volatile than Triller Group. It trades about 0.14 of its potential returns per unit of risk. Triller Group is currently generating about -0.01 per unit of risk. If you would invest  167.00  in Mercurity Fintech Holding on September 12, 2024 and sell it today you would earn a total of  485.00  from holding Mercurity Fintech Holding or generate 290.42% return on investment over 90 days.

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

Mercurity Fintech Holding  vs.  Triller Group

Mercurity Fintech Holding

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mercurity Fintech Holding are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting technical and fundamental indicators, Mercurity Fintech demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Triller Group

Risk-Adjusted Performance

1 of 100

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. Even with relatively weak essential indicators, Triller may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mercurity Fintech and Triller

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

The idea behind Mercurity Fintech Holding and Triller 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.