Correlation Between Shelton Funds and Centre American
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Centre American 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 Centre American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Centre American Select, you can compare the effects of market volatilities on Shelton Funds and Centre American 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 Centre American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Centre American.
Diversification Opportunities for Shelton Funds and Centre American
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and Centre is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Centre American Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre American Select 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 Centre American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre American Select has no effect on the direction of Shelton Funds i.e., Shelton Funds and Centre American go up and down completely randomly.
Pair Corralation between Shelton Funds and Centre American
Assuming the 90 days horizon Shelton Funds is expected to under-perform the Centre American. In addition to that, Shelton Funds is 3.35 times more volatile than Centre American Select. It trades about -0.08 of its total potential returns per unit of risk. Centre American Select is currently generating about 0.24 per unit of volatility. If you would invest 1,719 in Centre American Select on September 3, 2024 and sell it today you would earn a total of 47.00 from holding Centre American Select or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Centre American Select
Performance |
| Timeline |
| Shelton Funds |
| Centre American Select |
Shelton Funds and Centre American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Centre American
The main advantage of trading using opposite Shelton Funds and Centre American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Centre American 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 Centre American will offset losses from the drop in Centre American's long position.| Shelton Funds vs. Touchstone Small Cap | Shelton Funds vs. Chartwell Small Cap | Shelton Funds vs. Rbc Small Cap | Shelton Funds vs. Artisan Small Cap |
| Centre American vs. Vanguard Total Stock | Centre American vs. Vanguard 500 Index | Centre American vs. Vanguard Total Stock | Centre American vs. Vanguard Total Stock |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |