Correlation Between EA Series and Tortoise Capital

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

By analyzing existing cross correlation between EA Series Trust and Tortoise Capital Series, you can compare the effects of market volatilities on EA Series and Tortoise Capital 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 EA Series with a short position of Tortoise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Tortoise Capital.

Diversification Opportunities for EA Series and Tortoise Capital

0.32

Correlation Coefficient

EA Series  Tortoise Capital

Weak diversification

The 3 months correlation between DRLL and Tortoise is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Tortoise Capital Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Capital Series and EA Series 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 EA Series Trust are associated (or correlated) with Tortoise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Capital Series has no effect on the direction of EA Series i.e., EA Series and Tortoise Capital go up and down completely randomly.

Pair Corralation between EA Series and Tortoise Capital

Given the investment horizon of 90 days EA Series Trust is expected to generate 1.57 times more return on investment than Tortoise Capital. However, EA Series is 1.57 times more volatile than Tortoise Capital Series. It trades about 0.1 of its potential returns per unit of risk. Tortoise Capital Series is currently generating about -0.01 per unit of risk. If you would invest  2,586  in EA Series Trust on April 29, 2025 and sell it today you would earn a total of  208.00  from holding EA Series Trust or generate 8.04% return on investment over 90 days.

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

EA Series Trust  vs.  Tortoise Capital Series

EA Series Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EA Series Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal essential indicators, EA Series may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Tortoise Capital Series

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tortoise Capital Series has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tortoise Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with EA Series and Tortoise Capital

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

The idea behind EA Series Trust and Tortoise Capital Series 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 Transaction History module to view history of all your transactions and understand their impact on performance.