Correlation Between Tuttle Capital and First Trust
Can any of the company-specific risk be diversified away by investing in both Tuttle Capital and First Trust 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 First Trust 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 First Trust TCW, you can compare the effects of market volatilities on Tuttle Capital and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuttle Capital and First Trust.
Diversification Opportunities for Tuttle Capital and First Trust
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuttle and First is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and First Trust TCW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust TCW 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust TCW has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and First Trust go up and down completely randomly.
Pair Corralation between Tuttle Capital and First Trust
If you would invest 1,576 in First Trust TCW on September 1, 2024 and sell it today you would earn a total of 73.00 from holding First Trust TCW or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Tuttle Capital Management vs. First Trust TCW
Performance |
| Timeline |
| Tuttle Capital Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Trust TCW |
Tuttle Capital and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuttle Capital and First Trust
The main advantage of trading using opposite Tuttle Capital and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuttle Capital position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Tuttle Capital vs. Vanguard Total Stock | Tuttle Capital vs. SPDR SP 500 | Tuttle Capital vs. iShares Core SP | Tuttle Capital vs. Vanguard Dividend Appreciation |
| First Trust vs. First Trust TCW | First Trust vs. SPDR Bloomberg Barclays | First Trust vs. First Trust Short | First Trust vs. First Trust Emerging |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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