Correlation Between Tortoise Capital and MARTIN

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

Diversification Opportunities for Tortoise Capital and MARTIN

-0.76

Correlation Coefficient

Tortoise Capital  MARTIN

Pay attention - limited upside

The 3 months correlation between Tortoise and MARTIN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Capital Series and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Tortoise Capital i.e., Tortoise Capital and MARTIN go up and down completely randomly.

Pair Corralation between Tortoise Capital and MARTIN

Considering the 90-day investment horizon Tortoise Capital Series is expected to generate 1.92 times more return on investment than MARTIN. However, Tortoise Capital is 1.92 times more volatile than MARTIN MARIETTA MATLS. It trades about 0.13 of its potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about 0.01 per unit of risk. If you would invest  1,181  in Tortoise Capital Series on October 12, 2024 and sell it today you would earn a total of  886.00  from holding Tortoise Capital Series or generate 75.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	62.83%
Values	Daily Returns

Tortoise Capital Series  vs.  MARTIN MARIETTA MATLS

Tortoise Capital Series

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 12 (%) 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 February 2025.

MARTIN MARIETTA MATLS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MARTIN MARIETTA MATLS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MARTIN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tortoise Capital and MARTIN

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

The idea behind Tortoise Capital Series and MARTIN MARIETTA MATLS 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 Global Correlations module to find global opportunities by holding instruments from different markets.