Correlation Between Shelton Funds and Avantis Equity
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Avantis Equity 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 Funds and Avantis Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Avantis Equity, you can compare the effects of market volatilities on Shelton Funds and Avantis Equity 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 Funds with a short position of Avantis Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Avantis Equity.
Diversification Opportunities for Shelton Funds and Avantis Equity
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shelton and Avantis is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Avantis Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis Equity and Shelton Funds 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 Funds are associated (or correlated) with Avantis Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis Equity has no effect on the direction of Shelton Funds i.e., Shelton Funds and Avantis Equity go up and down completely randomly.
Pair Corralation between Shelton Funds and Avantis Equity
If you would invest 3,553 in Shelton Funds on November 3, 2024 and sell it today you would earn a total of 438.00 from holding Shelton Funds or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Shelton Funds vs. Avantis Equity
Performance |
| Timeline |
| Shelton Funds |
| Avantis Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Shelton Funds and Avantis Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Avantis Equity
The main advantage of trading using opposite Shelton Funds and Avantis Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Avantis Equity 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 Avantis Equity will offset losses from the drop in Avantis Equity's long position.| Shelton Funds vs. Fidelity Sai Convertible | Shelton Funds vs. Calamos Dynamic Convertible | Shelton Funds vs. Absolute Convertible Arbitrage | Shelton Funds vs. Allianzgi Convertible Income |
| Avantis Equity vs. Elfun Government Money | Avantis Equity vs. Aig Government Money | Avantis Equity vs. Federated Government Income | Avantis Equity vs. Us Government Securities |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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