Correlation Between Grid Dynamics and Triterras

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

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

Diversification Opportunities for Grid Dynamics and Triterras

0.0

Correlation Coefficient

Grid Dynamics  Triterras

Pay attention - limited upside

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

Pair Corralation between Grid Dynamics and Triterras

If you would invest  1,830  in Grid Dynamics Holdings on November 28, 2024 and sell it today you would earn a total of  202.00  from holding Grid Dynamics Holdings or generate 11.04% return on investment over 90 days.

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

Grid Dynamics Holdings  vs.  Triterras

Grid Dynamics Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grid Dynamics Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Grid Dynamics displayed solid returns over the last few months and may actually be approaching a breakup point.

Triterras

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triterras has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Triterras is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Grid Dynamics and Triterras

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

The idea behind Grid Dynamics Holdings and Triterras 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.