Correlation Between Shelton Emerging and James Alpha
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and James Alpha 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 James Alpha 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 James Alpha Structured, you can compare the effects of market volatilities on Shelton Emerging and James Alpha 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 James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and James Alpha.
Diversification Opportunities for Shelton Emerging and James Alpha
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shelton and James is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and James Alpha Structured in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Structured 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 James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Structured has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and James Alpha go up and down completely randomly.
Pair Corralation between Shelton Emerging and James Alpha
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the James Alpha. In addition to that, Shelton Emerging is 7.22 times more volatile than James Alpha Structured. It trades about -0.2 of its total potential returns per unit of risk. James Alpha Structured is currently generating about 0.04 per unit of volatility. If you would invest 1,009 in James Alpha Structured on August 30, 2024 and sell it today you would earn a total of 1.00 from holding James Alpha Structured or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. James Alpha Structured
Performance |
| Timeline |
| Shelton Emerging Markets |
| James Alpha Structured |
Shelton Emerging and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and James Alpha
The main advantage of trading using opposite Shelton Emerging and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Shelton Emerging vs. Wcm Focused Emerging | Shelton Emerging vs. Balter Invenomic Fund | Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income |
| James Alpha vs. James Alpha Global | James Alpha vs. James Alpha Global | James Alpha vs. James Alpha Global | James Alpha vs. James Alpha Global |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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