Correlation Between Nasdaq 100 and Shelton Core
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Shelton Core 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 Nasdaq 100 and Shelton Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Shelton E Value, you can compare the effects of market volatilities on Nasdaq 100 and Shelton Core 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 Nasdaq 100 with a short position of Shelton Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Shelton Core.
Diversification Opportunities for Nasdaq 100 and Shelton Core
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq and Shelton is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Shelton E Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton E Value and Nasdaq 100 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 Nasdaq 100 Index Fund are associated (or correlated) with Shelton Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton E Value has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Shelton Core go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Shelton Core
Assuming the 90 days horizon Nasdaq 100 is expected to generate 1.51 times less return on investment than Shelton Core. In addition to that, Nasdaq 100 is 2.14 times more volatile than Shelton E Value. It trades about 0.04 of its total potential returns per unit of risk. Shelton E Value is currently generating about 0.12 per unit of volatility. If you would invest 1,492 in Shelton E Value on September 1, 2024 and sell it today you would earn a total of 210.00 from holding Shelton E Value or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Shelton E Value
Performance |
| Timeline |
| Nasdaq 100 Index |
| Shelton E Value |
Nasdaq 100 and Shelton Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Shelton Core
The main advantage of trading using opposite Nasdaq 100 and Shelton Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Shelton Core 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 Core will offset losses from the drop in Shelton Core's long position.| Nasdaq 100 vs. Shelton Emerging Markets | Nasdaq 100 vs. Shelton Emerging Markets | Nasdaq 100 vs. California Tax Free Income | Nasdaq 100 vs. Shelton Funds |
| Shelton Core vs. Saat Moderate Strategy | Shelton Core vs. Dimensional Retirement Income | Shelton Core vs. Wisdomtree Siegel Moderate | Shelton Core vs. Fidelity Managed Retirement |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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