Correlation Between Acuity Brands and Tritium Dcfc
Can any of the company-specific risk be diversified away by investing in both Acuity Brands 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 Acuity Brands and Tritium Dcfc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acuity Brands and Tritium Dcfc, you can compare the effects of market volatilities on Acuity Brands 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 Acuity Brands with a short position of Tritium Dcfc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acuity Brands and Tritium Dcfc.
Diversification Opportunities for Acuity Brands and Tritium Dcfc
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acuity and Tritium is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Acuity Brands and Tritium Dcfc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritium Dcfc and Acuity Brands 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 Acuity Brands 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 has no effect on the direction of Acuity Brands i.e., Acuity Brands and Tritium Dcfc go up and down completely randomly.
Pair Corralation between Acuity Brands and Tritium Dcfc
Considering the 90-day investment horizon Acuity Brands is expected to generate 0.1 times more return on investment than Tritium Dcfc. However, Acuity Brands is 9.72 times less risky than Tritium Dcfc. It trades about 0.1 of its potential returns per unit of risk. Tritium Dcfc is currently generating about -0.04 per unit of risk. If you would invest 23,762 in Acuity Brands on August 28, 2024 and sell it today you would earn a total of 9,217 from holding Acuity Brands or generate 38.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Acuity Brands vs. Tritium Dcfc
Performance |
| Timeline |
| Acuity Brands |
| Tritium Dcfc |
Acuity Brands and Tritium Dcfc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acuity Brands and Tritium Dcfc
The main advantage of trading using opposite Acuity Brands and Tritium Dcfc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acuity Brands 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.| Acuity Brands vs. Bloom Energy Corp | Acuity Brands vs. Eos Energy Enterprises | Acuity Brands vs. Sunrise New Energy | Acuity Brands vs. GrafTech International |
| Tritium Dcfc vs. Microvast Holdings | Tritium Dcfc vs. FREYR Battery SA | Tritium Dcfc vs. Bloom Energy Corp | Tritium Dcfc vs. Enovix Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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