Correlation Between Tortoise Capital and EXD

Can any of the company-specific risk be diversified away by investing in both Tortoise Capital and EXD 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 EXD 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 EXD, you can compare the effects of market volatilities on Tortoise Capital and EXD 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 EXD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise Capital and EXD.

Diversification Opportunities for Tortoise Capital and EXD

0.0

Correlation Coefficient

Tortoise Capital  EXD

Pay attention - limited upside

The 3 months correlation between Tortoise and EXD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Capital Series and EXD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXD 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 EXD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXD has no effect on the direction of Tortoise Capital i.e., Tortoise Capital and EXD go up and down completely randomly.

Pair Corralation between Tortoise Capital and EXD

If you would invest  1,980  in Tortoise Capital Series on December 27, 2024 and sell it today you would earn a total of  120.00  from holding Tortoise Capital Series or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tortoise Capital Series  vs.  EXD

Tortoise Capital Series

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Tortoise Capital may actually be approaching a critical reversion point that can send shares even higher in April 2025.

EXD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EXD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, EXD is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tortoise Capital and EXD

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

The idea behind Tortoise Capital Series and EXD 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.