Correlation Between AXS 2X and Tuttle Capital

Can any of the company-specific risk be diversified away by investing in both AXS 2X 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 AXS 2X and Tuttle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AXS 2X Innovation and Tuttle Capital Short, you can compare the effects of market volatilities on AXS 2X 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 AXS 2X with a short position of Tuttle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS 2X and Tuttle Capital.

Diversification Opportunities for AXS 2X and Tuttle Capital

-0.93

Correlation Coefficient

AXS 2X  Tuttle Capital

Pay attention - limited upside

The 3 months correlation between AXS and Tuttle is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding AXS 2X Innovation 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 AXS 2X 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 AXS 2X Innovation 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 AXS 2X i.e., AXS 2X and Tuttle Capital go up and down completely randomly.

Pair Corralation between AXS 2X and Tuttle Capital

Given the investment horizon of 90 days AXS 2X Innovation is expected to under-perform the Tuttle Capital. But the etf apears to be less risky and, when comparing its historical volatility, AXS 2X Innovation is 1.01 times less risky than Tuttle Capital. The etf trades about -0.07 of its potential returns per unit of risk. The Tuttle Capital Short is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,863  in Tuttle Capital Short on December 27, 2024 and sell it today you would earn a total of  570.00  from holding Tuttle Capital Short or generate 14.76% return on investment over 90 days.

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

AXS 2X Innovation  vs.  Tuttle Capital Short

AXS 2X Innovation

Risk-Adjusted Performance

Very Weak

Over the last 90 days AXS 2X Innovation 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Tuttle Capital Short

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tuttle Capital Short are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Tuttle Capital disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXS 2X and Tuttle Capital

The main advantage of trading using opposite AXS 2X and Tuttle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS 2X 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 AXS 2X Innovation 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.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.