Correlation Between Shelton Funds and Aggressive Investors
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Aggressive Investors 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 Aggressive Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Aggressive Investors 1, you can compare the effects of market volatilities on Shelton Funds and Aggressive Investors 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 Aggressive Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Aggressive Investors.
Diversification Opportunities for Shelton Funds and Aggressive Investors
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shelton and Aggressive is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Aggressive Investors 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Investors 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 Aggressive Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Investors has no effect on the direction of Shelton Funds i.e., Shelton Funds and Aggressive Investors go up and down completely randomly.
Pair Corralation between Shelton Funds and Aggressive Investors
Assuming the 90 days horizon Shelton Funds is expected to generate 2.18 times less return on investment than Aggressive Investors. In addition to that, Shelton Funds is 1.14 times more volatile than Aggressive Investors 1. It trades about 0.09 of its total potential returns per unit of risk. Aggressive Investors 1 is currently generating about 0.23 per unit of volatility. If you would invest 9,678 in Aggressive Investors 1 on November 3, 2024 and sell it today you would earn a total of 534.00 from holding Aggressive Investors 1 or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Aggressive Investors 1
Performance |
| Timeline |
| Shelton Funds |
| Aggressive Investors |
Shelton Funds and Aggressive Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Aggressive Investors
The main advantage of trading using opposite Shelton Funds and Aggressive Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Aggressive Investors 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 Aggressive Investors will offset losses from the drop in Aggressive Investors' long position.| Shelton Funds vs. Us Vector Equity | Shelton Funds vs. Smallcap World Fund | Shelton Funds vs. The Growth Equity | Shelton Funds vs. Small Cap Equity |
| Aggressive Investors vs. Invesco Gold Special | Aggressive Investors vs. Great West Goldman Sachs | Aggressive Investors vs. Gold Portfolio Fidelity | Aggressive Investors vs. James Balanced Golden |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |