Correlation Between FREYR Battery and Tritium Dcfc
Can any of the company-specific risk be diversified away by investing in both FREYR Battery 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 FREYR Battery and Tritium Dcfc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FREYR Battery SA and Tritium Dcfc, you can compare the effects of market volatilities on FREYR Battery 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 FREYR Battery with a short position of Tritium Dcfc. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and Tritium Dcfc.
Diversification Opportunities for FREYR Battery and Tritium Dcfc
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FREYR and Tritium is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and Tritium Dcfc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritium Dcfc and FREYR Battery 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 FREYR Battery SA 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 FREYR Battery i.e., FREYR Battery and Tritium Dcfc go up and down completely randomly.
Pair Corralation between FREYR Battery and Tritium Dcfc
Given the investment horizon of 90 days FREYR Battery SA is expected to generate 1.21 times more return on investment than Tritium Dcfc. However, FREYR Battery is 1.21 times more volatile than Tritium Dcfc. It trades about 0.27 of its potential returns per unit of risk. Tritium Dcfc is currently generating about -0.19 per unit of risk. If you would invest 105.00 in FREYR Battery SA on August 27, 2024 and sell it today you would earn a total of 118.00 from holding FREYR Battery SA or generate 112.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FREYR Battery SA vs. Tritium Dcfc
Performance |
| Timeline |
| FREYR Battery SA |
| Tritium Dcfc |
FREYR Battery and Tritium Dcfc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and Tritium Dcfc
The main advantage of trading using opposite FREYR Battery and Tritium Dcfc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery 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.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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