Correlation Between Tritium DCFC and Inspirato

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

By analyzing existing cross correlation between Tritium DCFC Limited and Inspirato, you can compare the effects of market volatilities on Tritium DCFC and Inspirato 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 Tritium DCFC with a short position of Inspirato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tritium DCFC and Inspirato.

Diversification Opportunities for Tritium DCFC and Inspirato

0.0

Correlation Coefficient

Tritium DCFC  Inspirato

Pay attention - limited upside

The 3 months correlation between Tritium and Inspirato is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tritium DCFC Limited and Inspirato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspirato and Tritium DCFC 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 Tritium DCFC Limited are associated (or correlated) with Inspirato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspirato has no effect on the direction of Tritium DCFC i.e., Tritium DCFC and Inspirato go up and down completely randomly.

Pair Corralation between Tritium DCFC and Inspirato

If you would invest  338.00  in Inspirato on December 29, 2024 and sell it today you would earn a total of  104.00  from holding Inspirato or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tritium DCFC Limited  vs.  Inspirato

Tritium DCFC Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tritium DCFC Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Tritium DCFC is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Inspirato

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inspirato are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Inspirato displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tritium DCFC and Inspirato

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

The idea behind Tritium DCFC Limited and Inspirato 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.