Correlation Between Shelton Funds and Eic Value
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Eic Value 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 Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Eic Value Fund, you can compare the effects of market volatilities on Shelton Funds and Eic Value 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 Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Eic Value.
Diversification Opportunities for Shelton Funds and Eic Value
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shelton and Eic is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Shelton Funds i.e., Shelton Funds and Eic Value go up and down completely randomly.
Pair Corralation between Shelton Funds and Eic Value
Assuming the 90 days horizon Shelton Funds is expected to generate 1.59 times more return on investment than Eic Value. However, Shelton Funds is 1.59 times more volatile than Eic Value Fund. It trades about 0.21 of its potential returns per unit of risk. Eic Value Fund is currently generating about 0.31 per unit of risk. If you would invest 4,005 in Shelton Funds on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Shelton Funds or generate 4.34% 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. Eic Value Fund
Performance |
| Timeline |
| Shelton Funds |
| Eic Value Fund |
Shelton Funds and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Eic Value
The main advantage of trading using opposite Shelton Funds and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value'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 |
| Eic Value vs. Us Global Leaders | Eic Value vs. Rbc Global Opportunities | Eic Value vs. Artisan Global Unconstrained | Eic Value vs. Ab Global Risk |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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