Correlation Between Tritium DCFC and Advanced Energy

Can any of the company-specific risk be diversified away by investing in both Tritium DCFC and Advanced Energy 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 Advanced Energy 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 Advanced Energy Industries, you can compare the effects of market volatilities on Tritium DCFC and Advanced Energy 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 Advanced Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tritium DCFC and Advanced Energy.

Diversification Opportunities for Tritium DCFC and Advanced Energy

0.0

Correlation Coefficient

Tritium DCFC  Advanced Energy

Pay attention - limited upside

The 3 months correlation between Tritium and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tritium DCFC Limited and Advanced Energy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Energy Indu 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 Advanced Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Energy Indu has no effect on the direction of Tritium DCFC i.e., Tritium DCFC and Advanced Energy go up and down completely randomly.

Pair Corralation between Tritium DCFC and Advanced Energy

If you would invest  10,995  in Advanced Energy Industries on May 3, 2025 and sell it today you would earn a total of  2,530  from holding Advanced Energy Industries or generate 23.01% return on investment over 90 days.

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

Tritium DCFC Limited  vs.  Advanced Energy Industries

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Advanced Energy Indu

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Energy Industries are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward indicators, Advanced Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tritium DCFC and Advanced Energy

The main advantage of trading using opposite Tritium DCFC and Advanced Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tritium DCFC position performs unexpectedly, Advanced Energy 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 Advanced Energy will offset losses from the drop in Advanced Energy's long position.

The idea behind Tritium DCFC Limited and Advanced Energy Industries 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.