Correlation Between Tortoise Capital and Global X

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

Diversification Opportunities for Tortoise Capital and Global X

0.0

Correlation Coefficient

Tortoise Capital  Global X

Pay attention - limited upside

The 3 months correlation between Tortoise and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Capital Series and Global X MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MLP 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X MLP has no effect on the direction of Tortoise Capital i.e., Tortoise Capital and Global X go up and down completely randomly.

Pair Corralation between Tortoise Capital and Global X

Given the investment horizon of 90 days Tortoise Capital Series is expected to generate 0.93 times more return on investment than Global X. However, Tortoise Capital Series is 1.07 times less risky than Global X. It trades about -0.05 of its potential returns per unit of risk. Global X MLP is currently generating about -0.08 per unit of risk. If you would invest  3,510  in Tortoise Capital Series on August 5, 2025 and sell it today you would lose (79.00) from holding Tortoise Capital Series or give up 2.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tortoise Capital Series  vs.  Global X MLP

Tortoise Capital Series

Risk-Adjusted Performance

Weakest

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Global X MLP

Risk-Adjusted Performance

Weakest

Over the last 90 days Global X MLP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Global X is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tortoise Capital and Global X

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

The idea behind Tortoise Capital Series and Global X MLP 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.