Correlation Between Shelton Core and Templeton Foreign
Can any of the company-specific risk be diversified away by investing in both Shelton Core and Templeton Foreign 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 Core and Templeton Foreign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton E Value and Templeton Foreign Fund, you can compare the effects of market volatilities on Shelton Core and Templeton Foreign 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 Core with a short position of Templeton Foreign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Core and Templeton Foreign.
Diversification Opportunities for Shelton Core and Templeton Foreign
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shelton and Templeton is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shelton E Value and Templeton Foreign Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Foreign and Shelton Core 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 E Value are associated (or correlated) with Templeton Foreign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Foreign has no effect on the direction of Shelton Core i.e., Shelton Core and Templeton Foreign go up and down completely randomly.
Pair Corralation between Shelton Core and Templeton Foreign
Assuming the 90 days horizon Shelton E Value is expected to generate 0.74 times more return on investment than Templeton Foreign. However, Shelton E Value is 1.35 times less risky than Templeton Foreign. It trades about 0.01 of its potential returns per unit of risk. Templeton Foreign Fund is currently generating about -0.06 per unit of risk. If you would invest 1,657 in Shelton E Value on November 8, 2024 and sell it today you would earn a total of 3.00 from holding Shelton E Value or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton E Value vs. Templeton Foreign Fund
Performance |
| Timeline |
| Shelton E Value |
| Templeton Foreign |
Shelton Core and Templeton Foreign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Core and Templeton Foreign
The main advantage of trading using opposite Shelton Core and Templeton Foreign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Core position performs unexpectedly, Templeton Foreign 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 Templeton Foreign will offset losses from the drop in Templeton Foreign's long position.| Shelton Core vs. Columbia Convertible Securities | Shelton Core vs. Lord Abbett Convertible | Shelton Core vs. Gabelli Convertible And | Shelton Core vs. Calamos Dynamic Convertible |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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