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 Limited, 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

0.0

Correlation Coefficient

Acuity Brands  Tritium DCFC

Pay attention - limited upside

The 3 months correlation between Acuity and Tritium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acuity Brands 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 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 Limited 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

If you would invest  25,237  in Acuity Brands on May 5, 2025 and sell it today you would earn a total of  5,246  from holding Acuity Brands or generate 20.79% return on investment over 90 days.

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

Acuity Brands  vs.  Tritium DCFC Limited

Acuity Brands

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acuity Brands are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Acuity Brands demonstrated 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. Even with relatively invariable fundamental indicators, Tritium DCFC is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

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.

The idea behind Acuity Brands 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.