Correlation Between Global X and Tuttle Capital

Can any of the company-specific risk be diversified away by investing in both Global X and Tuttle Capital 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 Global X and Tuttle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global X Blockchain and Tuttle Capital Short, you can compare the effects of market volatilities on Global X and Tuttle Capital 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 Global X with a short position of Tuttle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Tuttle Capital.

Diversification Opportunities for Global X and Tuttle Capital

-0.72

Correlation Coefficient

Global X  Tuttle Capital

Pay attention - limited upside

The 3 months correlation between Global and Tuttle is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and Tuttle Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuttle Capital Short and Global X 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 Global X Blockchain are associated (or correlated) with Tuttle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuttle Capital Short has no effect on the direction of Global X i.e., Global X and Tuttle Capital go up and down completely randomly.

Pair Corralation between Global X and Tuttle Capital

Given the investment horizon of 90 days Global X Blockchain is expected to generate 0.95 times more return on investment than Tuttle Capital. However, Global X Blockchain is 1.06 times less risky than Tuttle Capital. It trades about 0.04 of its potential returns per unit of risk. Tuttle Capital Short is currently generating about -0.11 per unit of risk. If you would invest  5,651  in Global X Blockchain on October 7, 2024 and sell it today you would earn a total of  206.00  from holding Global X Blockchain or generate 3.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Global X Blockchain  vs.  Tuttle Capital Short

Global X Blockchain

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Blockchain are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Global X demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Tuttle Capital Short

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tuttle Capital Short has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Pair Trading with Global X and Tuttle Capital

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

The idea behind Global X Blockchain and Tuttle Capital Short 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.