Correlation Between Shelton Funds and Dreyfus Opportunistic
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Dreyfus Opportunistic 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 Dreyfus Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Dreyfus Opportunistic Midcap, you can compare the effects of market volatilities on Shelton Funds and Dreyfus Opportunistic 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 Dreyfus Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Dreyfus Opportunistic.
Diversification Opportunities for Shelton Funds and Dreyfus Opportunistic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shelton and Dreyfus is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Dreyfus Opportunistic Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Opportunistic 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 Dreyfus Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Opportunistic has no effect on the direction of Shelton Funds i.e., Shelton Funds and Dreyfus Opportunistic go up and down completely randomly.
Pair Corralation between Shelton Funds and Dreyfus Opportunistic
Assuming the 90 days horizon Shelton Funds is expected to generate 1.58 times less return on investment than Dreyfus Opportunistic. In addition to that, Shelton Funds is 1.14 times more volatile than Dreyfus Opportunistic Midcap. It trades about 0.21 of its total potential returns per unit of risk. Dreyfus Opportunistic Midcap is currently generating about 0.38 per unit of volatility. If you would invest 3,347 in Dreyfus Opportunistic Midcap on September 1, 2024 and sell it today you would earn a total of 236.00 from holding Dreyfus Opportunistic Midcap or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Dreyfus Opportunistic Midcap
Performance |
| Timeline |
| Shelton Funds |
| Dreyfus Opportunistic |
Shelton Funds and Dreyfus Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Dreyfus Opportunistic
The main advantage of trading using opposite Shelton Funds and Dreyfus Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Dreyfus Opportunistic 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 Dreyfus Opportunistic will offset losses from the drop in Dreyfus Opportunistic's long position.| Shelton Funds vs. Locorr Market Trend | Shelton Funds vs. Harbor Diversified International | Shelton Funds vs. Artisan Emerging Markets | Shelton Funds vs. Shelton Emerging Markets |
| Dreyfus Opportunistic vs. T Rowe Price | Dreyfus Opportunistic vs. Metropolitan West High | Dreyfus Opportunistic vs. Ab Global Risk | Dreyfus Opportunistic vs. Lgm Risk Managed |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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