Correlation Between Shelton Funds and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Kinetics Small 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 Kinetics Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Kinetics Small Cap, you can compare the effects of market volatilities on Shelton Funds and Kinetics Small 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 Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Kinetics Small.
Diversification Opportunities for Shelton Funds and Kinetics Small
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shelton and Kinetics is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap 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 Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Shelton Funds i.e., Shelton Funds and Kinetics Small go up and down completely randomly.
Pair Corralation between Shelton Funds and Kinetics Small
Assuming the 90 days horizon Shelton Funds is expected to under-perform the Kinetics Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Shelton Funds is 1.28 times less risky than Kinetics Small. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Kinetics Small Cap is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 17,889 in Kinetics Small Cap on October 23, 2024 and sell it today you would earn a total of 2,444 from holding Kinetics Small Cap or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Kinetics Small Cap
Performance |
| Timeline |
| Shelton Funds |
| Kinetics Small Cap |
Shelton Funds and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Kinetics Small
The main advantage of trading using opposite Shelton Funds and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Kinetics Small 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 Kinetics Small will offset losses from the drop in Kinetics Small's long position.| Shelton Funds vs. Fidelity Small Cap | Shelton Funds vs. Ultrasmall Cap Profund Ultrasmall Cap | Shelton Funds vs. Vanguard Small Cap Value | Shelton Funds vs. William Blair Small |
| Kinetics Small vs. T Rowe Price | Kinetics Small vs. Shelton Funds | Kinetics Small vs. Rbc Funds Trust | Kinetics Small vs. Alternative Asset Allocation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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