Correlation Between Firsthand Alternative and Shelton Green
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Shelton Green 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 Firsthand Alternative and Shelton Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Shelton Green Alpha, you can compare the effects of market volatilities on Firsthand Alternative and Shelton Green 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 Firsthand Alternative with a short position of Shelton Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Shelton Green.
Diversification Opportunities for Firsthand Alternative and Shelton Green
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Firsthand and Shelton is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Shelton Green Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Green Alpha and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Shelton Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Green Alpha has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Shelton Green go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Shelton Green
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 1.53 times more return on investment than Shelton Green. However, Firsthand Alternative is 1.53 times more volatile than Shelton Green Alpha. It trades about 0.16 of its potential returns per unit of risk. Shelton Green Alpha is currently generating about 0.03 per unit of risk. If you would invest 985.00 in Firsthand Alternative Energy on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Firsthand Alternative Energy or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Shelton Green Alpha
Performance |
| Timeline |
| Firsthand Alternative |
| Shelton Green Alpha |
Firsthand Alternative and Shelton Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Shelton Green
The main advantage of trading using opposite Firsthand Alternative and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Shelton Green 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 Green will offset losses from the drop in Shelton Green's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Shelton Green vs. Pro Blend Moderate Term | Shelton Green vs. Jp Morgan Smartretirement | Shelton Green vs. Columbia Moderate Growth | Shelton Green vs. Deutsche Multi Asset Moderate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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