Correlation Between Tortoise Capital and VanEck Agribusiness

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

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

Diversification Opportunities for Tortoise Capital and VanEck Agribusiness

-0.56

Correlation Coefficient

Tortoise Capital  VanEck Agribusiness

Excellent diversification

The 3 months correlation between Tortoise and VanEck is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Capital Series and VanEck Agribusiness ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Agribusiness ETF and Tortoise 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 Tortoise Capital Series are associated (or correlated) with VanEck Agribusiness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Agribusiness ETF has no effect on the direction of Tortoise Capital i.e., Tortoise Capital and VanEck Agribusiness go up and down completely randomly.

Pair Corralation between Tortoise Capital and VanEck Agribusiness

Given the investment horizon of 90 days Tortoise Capital Series is expected to generate 2.37 times more return on investment than VanEck Agribusiness. However, Tortoise Capital is 2.37 times more volatile than VanEck Agribusiness ETF. It trades about 0.16 of its potential returns per unit of risk. VanEck Agribusiness ETF is currently generating about -0.03 per unit of risk. If you would invest  2,560  in Tortoise Capital Series on August 30, 2025 and sell it today you would earn a total of  529.00  from holding Tortoise Capital Series or generate 20.66% return on investment over 90 days.

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

Tortoise Capital Series  vs.  VanEck Agribusiness ETF

Tortoise Capital Series

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Tortoise Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

VanEck Agribusiness ETF

Risk-Adjusted Performance

Weakest

Over the last 90 days VanEck Agribusiness ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, VanEck Agribusiness is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Tortoise Capital and VanEck Agribusiness

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

The idea behind Tortoise Capital Series and VanEck Agribusiness ETF 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.