Correlation Between 361 Global and Shelton Core
Can any of the company-specific risk be diversified away by investing in both 361 Global and Shelton Core 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 361 Global and Shelton Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Shelton E Value, you can compare the effects of market volatilities on 361 Global and Shelton Core 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 361 Global with a short position of Shelton Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Shelton Core.
Diversification Opportunities for 361 Global and Shelton Core
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 361 and Shelton is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Shelton E Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton E Value and 361 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 361 Global Longshort are associated (or correlated) with Shelton Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton E Value has no effect on the direction of 361 Global i.e., 361 Global and Shelton Core go up and down completely randomly.
Pair Corralation between 361 Global and Shelton Core
Assuming the 90 days horizon 361 Global is expected to generate 2.47 times less return on investment than Shelton Core. But when comparing it to its historical volatility, 361 Global Longshort is 1.25 times less risky than Shelton Core. It trades about 0.06 of its potential returns per unit of risk. Shelton E Value is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,224 in Shelton E Value on September 5, 2024 and sell it today you would earn a total of 478.00 from holding Shelton E Value or generate 39.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
361 Global Longshort vs. Shelton E Value
Performance |
| Timeline |
| 361 Global Longshort |
| Shelton E Value |
361 Global and Shelton Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and Shelton Core
The main advantage of trading using opposite 361 Global and Shelton Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, Shelton Core 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 Shelton Core will offset losses from the drop in Shelton Core's long position.| 361 Global vs. Swan Defined Risk | 361 Global vs. Boston Partners Longshort | 361 Global vs. 361 Global Longshort | 361 Global vs. Aqr Long Short Equity |
| Shelton Core vs. Shelton Emerging Markets | Shelton Core vs. Shelton Emerging Markets | Shelton Core vs. California Tax Free Income | Shelton Core vs. Shelton Funds |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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