Correlation Between Eic Value and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Eic Value and Shelton Funds 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 Eic Value and Shelton Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Shelton Funds , you can compare the effects of market volatilities on Eic Value and Shelton Funds 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 Eic Value with a short position of Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Shelton Funds.
Diversification Opportunities for Eic Value and Shelton Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eic and Shelton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Eic Value 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 Eic Value Fund are associated (or correlated) with Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Eic Value i.e., Eic Value and Shelton Funds go up and down completely randomly.
Pair Corralation between Eic Value and Shelton Funds
Assuming the 90 days horizon Eic Value is expected to generate 1.05 times less return on investment than Shelton Funds. But when comparing it to its historical volatility, Eic Value Fund is 1.59 times less risky than Shelton Funds. It trades about 0.31 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,005 in Shelton Funds on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Shelton Funds or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Shelton Funds
Performance |
| Timeline |
| Eic Value Fund |
| Shelton Funds |
Eic Value and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Shelton Funds
The main advantage of trading using opposite Eic Value and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Shelton Funds 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 Funds will offset losses from the drop in Shelton Funds' long position.| Eic Value vs. Us Global Leaders | Eic Value vs. Rbc Global Opportunities | Eic Value vs. Artisan Global Unconstrained | Eic Value vs. Ab Global Risk |
| Shelton Funds vs. Locorr Market Trend | Shelton Funds vs. Harbor Diversified International | Shelton Funds vs. Artisan Emerging Markets | Shelton Funds vs. Shelton Emerging Markets |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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