Correlation Between Shelton Emerging and Us Government
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Us Government 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 Shelton Emerging and Us Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Us Government Securities, you can compare the effects of market volatilities on Shelton Emerging and Us Government 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 Shelton Emerging with a short position of Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Us Government.
Diversification Opportunities for Shelton Emerging and Us Government
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shelton and CAUSX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities and Shelton Emerging 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 Shelton Emerging Markets are associated (or correlated) with Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Us Government go up and down completely randomly.
Pair Corralation between Shelton Emerging and Us Government
Assuming the 90 days horizon Shelton Emerging Markets is expected to generate 2.77 times more return on investment than Us Government. However, Shelton Emerging is 2.77 times more volatile than Us Government Securities. It trades about 0.02 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.03 per unit of risk. If you would invest 1,654 in Shelton Emerging Markets on August 29, 2024 and sell it today you would earn a total of 118.00 from holding Shelton Emerging Markets or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Us Government Securities
Performance |
| Timeline |
| Shelton Emerging Markets |
| Us Government Securities |
Shelton Emerging and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Us Government
The main advantage of trading using opposite Shelton Emerging and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. HUMANA INC | Shelton Emerging vs. Aquagold International |
| Us Government vs. Us Government Securities | Us Government vs. American Funds Government | Us Government vs. Vanguard Mortgage Backed Securities | Us Government vs. Vanguard Gnma Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |