Correlation Between New Alternatives and Shelton Green
Can any of the company-specific risk be diversified away by investing in both New Alternatives 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 New Alternatives and Shelton Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Alternatives Fund and Shelton Green Alpha, you can compare the effects of market volatilities on New Alternatives 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 New Alternatives with a short position of Shelton Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Alternatives and Shelton Green.
Diversification Opportunities for New Alternatives and Shelton Green
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Shelton is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding New Alternatives Fund 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 New Alternatives 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 New Alternatives Fund 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 New Alternatives i.e., New Alternatives and Shelton Green go up and down completely randomly.
Pair Corralation between New Alternatives and Shelton Green
Assuming the 90 days horizon New Alternatives Fund is expected to generate 0.86 times more return on investment than Shelton Green. However, New Alternatives Fund is 1.16 times less risky than Shelton Green. It trades about 0.13 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 6,368 in New Alternatives Fund on September 13, 2024 and sell it today you would earn a total of 117.00 from holding New Alternatives Fund or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Alternatives Fund vs. Shelton Green Alpha
Performance |
| Timeline |
| New Alternatives |
| Shelton Green Alpha |
New Alternatives and Shelton Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Alternatives and Shelton Green
The main advantage of trading using opposite New Alternatives and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Alternatives 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.| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |