Correlation Between Tuttle Capital and LJIM

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

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

Diversification Opportunities for Tuttle Capital and LJIM

-0.85

Correlation Coefficient

Tuttle Capital  LJIM

Pay attention - limited upside

The 3 months correlation between Tuttle and LJIM is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Short and LJIM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LJIM and Tuttle Capital 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 Tuttle Capital Short are associated (or correlated) with LJIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LJIM has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and LJIM go up and down completely randomly.

Pair Corralation between Tuttle Capital and LJIM

If you would invest  2,656  in LJIM on October 5, 2024 and sell it today you would earn a total of  0.00  from holding LJIM or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	0.65%
Values	Daily Returns

Tuttle Capital Short  vs.  LJIM

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.

LJIM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LJIM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, LJIM is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Tuttle Capital and LJIM

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

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