Correlation Between Tuttle Capital and FLEX LNG

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

By analyzing existing cross correlation between Tuttle Capital Management and FLEX LNG, you can compare the effects of market volatilities on Tuttle Capital and FLEX LNG 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 FLEX LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuttle Capital and FLEX LNG.

Diversification Opportunities for Tuttle Capital and FLEX LNG

0.71

Correlation Coefficient

Tuttle Capital  FLEX LNG

Poor diversification

The 3 months correlation between Tuttle and FLEX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and FLEX LNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLEX LNG 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 Management are associated (or correlated) with FLEX LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLEX LNG has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and FLEX LNG go up and down completely randomly.

Pair Corralation between Tuttle Capital and FLEX LNG

If you would invest  2,185  in Tuttle Capital Management on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Tuttle Capital Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Tuttle Capital Management  vs.  FLEX LNG

Tuttle Capital Management

Risk-Adjusted Performance

0 of 100

Very Weak

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

FLEX LNG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FLEX LNG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Tuttle Capital and FLEX LNG

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

The idea behind Tuttle Capital Management and FLEX LNG 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.