Correlation Between Tortoise Capital and Apollo Tactical

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

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

Diversification Opportunities for Tortoise Capital and Apollo Tactical

0.85

Correlation Coefficient

Tortoise Capital  Apollo Tactical

Very poor diversification

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

Pair Corralation between Tortoise Capital and Apollo Tactical

If you would invest  1,790  in Tortoise Capital Series on September 13, 2024 and sell it today you would earn a total of  239.00  from holding Tortoise Capital Series or generate 13.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.59%
Values	Daily Returns

Tortoise Capital Series  vs.  Apollo Tactical Income

Tortoise Capital Series

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady basic indicators, Tortoise Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Apollo Tactical Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Tactical Income has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable forward indicators, Apollo Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tortoise Capital and Apollo Tactical

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

The idea behind Tortoise Capital Series and Apollo Tactical Income 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.