Correlation Between Tuttle Capital and God Bless

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

Diversification Opportunities for Tuttle Capital and God Bless

0.87
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Tuttle and God is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tuttle Capital Management and God Bless America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on God Bless America 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 God Bless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of God Bless America has no effect on the direction of Tuttle Capital i.e., Tuttle Capital and God Bless go up and down completely randomly.

Pair Corralation between Tuttle Capital and God Bless

Given the investment horizon of 90 days Tuttle Capital is expected to generate 1.2 times less return on investment than God Bless. But when comparing it to its historical volatility, Tuttle Capital Management is 1.13 times less risky than God Bless. It trades about 0.13 of its potential returns per unit of risk. God Bless America is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,117  in God Bless America on September 6, 2024 and sell it today you would earn a total of  1,914  from holding God Bless America or generate 90.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy30.3%
ValuesDaily Returns

Tuttle Capital Management  vs.  God Bless America

 Performance 
       Timeline  
Tuttle Capital Management 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Tuttle Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tuttle Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
God Bless America 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in God Bless America are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, God Bless disclosed solid returns over the last few months and may actually be approaching a breakup point.

Tuttle Capital and God Bless Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tuttle Capital and God Bless

The main advantage of trading using opposite Tuttle Capital and God Bless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuttle Capital position performs unexpectedly, God Bless 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 God Bless will offset losses from the drop in God Bless' long position.
The idea behind Tuttle Capital Management and God Bless America 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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