Correlation Between Shelton Funds and Us Government
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Us Government 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 Us Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Us Government Securities, you can compare the effects of market volatilities on Shelton Funds and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Us Government.
Diversification Opportunities for Shelton Funds and Us Government
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shelton and CAUSX is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Shelton Funds i.e., Shelton Funds and Us Government go up and down completely randomly.
Pair Corralation between Shelton Funds and Us Government
Assuming the 90 days horizon Shelton Funds is expected to generate 3.46 times more return on investment than Us Government. However, Shelton Funds is 3.46 times more volatile than Us Government Securities. It trades about 0.09 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.03 per unit of risk. If you would invest 2,486 in Shelton Funds on August 29, 2024 and sell it today you would earn a total of 1,729 from holding Shelton Funds or generate 69.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Us Government Securities
Performance |
| Timeline |
| Shelton Funds |
| Us Government Securities |
Shelton Funds and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Us Government
The main advantage of trading using opposite Shelton Funds and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Shelton Funds vs. Gamco Global Gold | Shelton Funds vs. Fidelity Advisor Gold | Shelton Funds vs. First Eagle Gold | Shelton Funds vs. Goldman Sachs Centrated |
| Us Government vs. Us Government Securities | Us Government vs. American Funds Government | Us Government vs. Vanguard Mortgage Backed Securities | Us Government vs. Vanguard Gnma Fund |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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