Correlation Between EZCORP and Tortoise Energy

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

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

Diversification Opportunities for EZCORP and Tortoise Energy

-0.42

Correlation Coefficient

EZCORP  Tortoise Energy

Very good diversification

The 3 months correlation between EZCORP and Tortoise is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding EZCORP Inc and Tortoise Energy Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Energy Infr and EZCORP 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 EZCORP Inc 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 Infr has no effect on the direction of EZCORP i.e., EZCORP and Tortoise Energy go up and down completely randomly.

Pair Corralation between EZCORP and Tortoise Energy

Given the investment horizon of 90 days EZCORP is expected to generate 10.29 times less return on investment than Tortoise Energy. In addition to that, EZCORP is 2.47 times more volatile than Tortoise Energy Infrastructure. It trades about 0.01 of its total potential returns per unit of risk. Tortoise Energy Infrastructure is currently generating about 0.25 per unit of volatility. If you would invest  3,833  in Tortoise Energy Infrastructure on May 6, 2025 and sell it today you would earn a total of  523.00  from holding Tortoise Energy Infrastructure or generate 13.64% return on investment over 90 days.

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

EZCORP Inc  vs.  Tortoise Energy Infrastructure

EZCORP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days EZCORP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, EZCORP is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Tortoise Energy Infr

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Energy Infrastructure are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Tortoise Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EZCORP and Tortoise Energy

The main advantage of trading using opposite EZCORP and Tortoise Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZCORP 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 EZCORP Inc and Tortoise Energy Infrastructure 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.