Correlation Between Shelton Funds and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Eaton Vance Short, you can compare the effects of market volatilities on Shelton Funds and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Eaton Vance.
Diversification Opportunities for Shelton Funds and Eaton Vance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and Eaton is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Short has no effect on the direction of Shelton Funds i.e., Shelton Funds and Eaton Vance go up and down completely randomly.
Pair Corralation between Shelton Funds and Eaton Vance
Assuming the 90 days horizon Shelton Funds is expected to generate 11.14 times more return on investment than Eaton Vance. However, Shelton Funds is 11.14 times more volatile than Eaton Vance Short. It trades about 0.12 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.18 per unit of risk. If you would invest 4,097 in Shelton Funds on August 29, 2024 and sell it today you would earn a total of 118.00 from holding Shelton Funds or generate 2.88% 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. Eaton Vance Short
Performance |
| Timeline |
| Shelton Funds |
| Eaton Vance Short |
Shelton Funds and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Eaton Vance
The main advantage of trading using opposite Shelton Funds and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. T Rowe Price | Eaton Vance vs. Ab Value Fund | Eaton Vance vs. Omni Small Cap Value | Eaton Vance vs. Shelton Funds |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |