Correlation Between Dream Finders and Tritent International

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

By analyzing existing cross correlation between Dream Finders Homes and Tritent International Agriculture, you can compare the effects of market volatilities on Dream Finders and Tritent International 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 Dream Finders with a short position of Tritent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Finders and Tritent International.

Diversification Opportunities for Dream Finders and Tritent International

0.0

Correlation Coefficient

Dream Finders  Tritent International

Pay attention - limited upside

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

Pair Corralation between Dream Finders and Tritent International

Considering the 90-day investment horizon Dream Finders is expected to generate 93.94 times less return on investment than Tritent International. But when comparing it to its historical volatility, Dream Finders Homes is 14.4 times less risky than Tritent International. It trades about 0.01 of its potential returns per unit of risk. Tritent International Agriculture is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1.02  in Tritent International Agriculture on October 4, 2024 and sell it today you would earn a total of  7.18  from holding Tritent International Agriculture or generate 703.92% return on investment over 90 days.

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

Dream Finders Homes  vs.  Tritent International Agricult

Dream Finders Homes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dream Finders Homes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Tritent International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Tritent International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dream Finders and Tritent International

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

The idea behind Dream Finders Homes and Tritent International Agriculture 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 Transaction History module to view history of all your transactions and understand their impact on performance.