Correlation Between Tritium DCFC and Cepton
Can any of the company-specific risk be diversified away by investing in both Tritium DCFC and Cepton 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 Tritium DCFC and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tritium DCFC Limited and Cepton Inc, you can compare the effects of market volatilities on Tritium DCFC and Cepton 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 Tritium DCFC with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tritium DCFC and Cepton.
Diversification Opportunities for Tritium DCFC and Cepton
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tritium and Cepton is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tritium DCFC Limited and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Tritium DCFC 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 Tritium DCFC Limited are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Tritium DCFC i.e., Tritium DCFC and Cepton go up and down completely randomly.
Pair Corralation between Tritium DCFC and Cepton
If you would invest 252.00 in Cepton Inc on August 30, 2024 and sell it today you would earn a total of 61.00 from holding Cepton Inc or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 7.14% |
| Values | Daily Returns |
Tritium DCFC Limited vs. Cepton Inc
Performance |
| Timeline |
| Tritium DCFC Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cepton Inc |
Tritium DCFC and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tritium DCFC and Cepton
The main advantage of trading using opposite Tritium DCFC and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tritium DCFC position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Tritium DCFC vs. Tritium Dcfc | Tritium DCFC vs. EVgo Equity Warrants | Tritium DCFC vs. Solid Power | Tritium DCFC vs. Thayer Ventures Acquisition |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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