Correlation Between GSR II and Tritium DCFC

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

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

Diversification Opportunities for GSR II and Tritium DCFC

0.0

Correlation Coefficient

GSR II  Tritium DCFC

Pay attention - limited upside

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

Pair Corralation between GSR II and Tritium DCFC

If you would invest  1.80  in Tritium DCFC Limited on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Tritium DCFC Limited or generate 0.0% return on investment over 90 days.

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

GSR II Meteora  vs.  Tritium DCFC Limited

GSR II Meteora

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GSR II Meteora has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, GSR II is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Tritium DCFC Limited

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with GSR II and Tritium DCFC

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

The idea behind GSR II Meteora and Tritium DCFC Limited 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.