Correlation Between Tuttle Capital and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Tuttle Capital and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on Tuttle Capital and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuttle Capital and SSgA SPDR.
Diversification Opportunities for Tuttle Capital and SSgA SPDR
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tuttle and SSgA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and SSgA SPDR go up and down completely randomly.
Pair Corralation between Tuttle Capital and SSgA SPDR
Given the investment horizon of 90 days Tuttle Capital Management is expected to generate 0.64 times more return on investment than SSgA SPDR. However, Tuttle Capital Management is 1.55 times less risky than SSgA SPDR. It trades about 0.09 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.05 per unit of risk. If you would invest 2,237 in Tuttle Capital Management on September 3, 2024 and sell it today you would earn a total of 290.00 from holding Tuttle Capital Management or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.42% |
| Values | Daily Returns |
Tuttle Capital Management vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Tuttle Capital Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SSgA SPDR ETFs |
Tuttle Capital and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuttle Capital and SSgA SPDR
The main advantage of trading using opposite Tuttle Capital and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuttle Capital position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR'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 |
| SSgA SPDR vs. Vanguard Total Stock | SSgA SPDR vs. SPDR SP 500 | SSgA SPDR vs. Vanguard Total Bond | SSgA SPDR vs. Vanguard Value Index |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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