Correlation Between Alpine Global and Tortoise Energy

Can any of the company-specific risk be diversified away by investing in both Alpine Global and Tortoise Energy 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 Alpine Global and Tortoise Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpine Global Infrastructure and Tortoise Energy Independence, you can compare the effects of market volatilities on Alpine Global and Tortoise Energy 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 Alpine Global with a short position of Tortoise Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpine Global and Tortoise Energy.

Diversification Opportunities for Alpine Global and Tortoise Energy

-0.54

Correlation Coefficient

Alpine Global  Tortoise Energy

Excellent diversification

The 3 months correlation between Alpine and Tortoise is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alpine Global Infrastructure and Tortoise Energy Independence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Energy Inde and Alpine Global 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 Alpine Global Infrastructure are associated (or correlated) with Tortoise Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Energy Inde has no effect on the direction of Alpine Global i.e., Alpine Global and Tortoise Energy go up and down completely randomly.

Pair Corralation between Alpine Global and Tortoise Energy

Assuming the 90 days horizon Alpine Global Infrastructure is expected to under-perform the Tortoise Energy. But the mutual fund apears to be less risky and, when comparing its historical volatility, Alpine Global Infrastructure is 2.2 times less risky than Tortoise Energy. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Tortoise Energy Independence is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,843  in Tortoise Energy Independence on September 14, 2024 and sell it today you would earn a total of  398.00  from holding Tortoise Energy Independence or generate 10.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alpine Global Infrastructure  vs.  Tortoise Energy Independence

Alpine Global Infras

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpine Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Alpine Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tortoise Energy Inde

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Energy Independence are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tortoise Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Alpine Global and Tortoise Energy

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

The idea behind Alpine Global Infrastructure and Tortoise Energy Independence 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 CEOs Directory module to screen CEOs from public companies around the world.