Correlation Between Thayer Ventures and Tritium DCFC

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

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

Diversification Opportunities for Thayer Ventures and Tritium DCFC

0.0

Correlation Coefficient

Thayer Ventures  Tritium DCFC

Pay attention - limited upside

The 3 months correlation between Thayer and Tritium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition 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 Thayer Ventures 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 Thayer Ventures Acquisition 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 Thayer Ventures i.e., Thayer Ventures and Tritium DCFC go up and down completely randomly.

Pair Corralation between Thayer Ventures and Tritium DCFC

If you would invest  8.50  in Thayer Ventures Acquisition on December 4, 2024 and sell it today you would lose (7.10) from holding Thayer Ventures Acquisition or give up 83.53% of portfolio value over 90 days.

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

Thayer Ventures Acquisition  vs.  Tritium DCFC Limited

Thayer Ventures Acqu

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Thayer Ventures and Tritium DCFC

The main advantage of trading using opposite Thayer Ventures and Tritium DCFC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures 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 Thayer Ventures Acquisition 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.