Correlation Between Tuttle Capital and Cambria Cannabis
Can any of the company-specific risk be diversified away by investing in both Tuttle Capital and Cambria Cannabis 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 Cambria Cannabis 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 Cambria Cannabis ETF, you can compare the effects of market volatilities on Tuttle Capital and Cambria Cannabis 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 Cambria Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuttle Capital and Cambria Cannabis.
Diversification Opportunities for Tuttle Capital and Cambria Cannabis
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tuttle and Cambria is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and Cambria Cannabis ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Cannabis ETF 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 Cambria Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Cannabis ETF has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and Cambria Cannabis go up and down completely randomly.
Pair Corralation between Tuttle Capital and Cambria Cannabis
Given the investment horizon of 90 days Tuttle Capital Management is expected to generate 0.5 times more return on investment than Cambria Cannabis. However, Tuttle Capital Management is 1.98 times less risky than Cambria Cannabis. It trades about 0.09 of its potential returns per unit of risk. Cambria Cannabis ETF is currently generating about -0.01 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 Against |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Tuttle Capital Management vs. Cambria Cannabis ETF
Performance |
| Timeline |
| Tuttle Capital Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cambria Cannabis ETF |
Tuttle Capital and Cambria Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuttle Capital and Cambria Cannabis
The main advantage of trading using opposite Tuttle Capital and Cambria Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuttle Capital position performs unexpectedly, Cambria Cannabis 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 Cambria Cannabis will offset losses from the drop in Cambria Cannabis' 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 |
| Cambria Cannabis vs. Managed Account Series | Cambria Cannabis vs. Fidelity Sai International | Cambria Cannabis vs. Schwab Strategic Trust | Cambria Cannabis vs. Inpex Corp ADR |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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