Correlation Between Shelton Funds and Invesco Select
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Invesco Select 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 Invesco Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Invesco Select Risk, you can compare the effects of market volatilities on Shelton Funds and Invesco Select 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 Invesco Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Invesco Select.
Diversification Opportunities for Shelton Funds and Invesco Select
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shelton and Invesco is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Invesco Select Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Select Risk 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 Invesco Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Select Risk has no effect on the direction of Shelton Funds i.e., Shelton Funds and Invesco Select go up and down completely randomly.
Pair Corralation between Shelton Funds and Invesco Select
Assuming the 90 days horizon Shelton Funds is expected to generate 1.67 times more return on investment than Invesco Select. However, Shelton Funds is 1.67 times more volatile than Invesco Select Risk. It trades about 0.07 of its potential returns per unit of risk. Invesco Select Risk is currently generating about 0.05 per unit of risk. If you would invest 2,791 in Shelton Funds on November 27, 2024 and sell it today you would earn a total of 1,179 from holding Shelton Funds or generate 42.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Invesco Select Risk
Performance |
| Timeline |
| Shelton Funds |
| Invesco Select Risk |
Shelton Funds and Invesco Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Invesco Select
The main advantage of trading using opposite Shelton Funds and Invesco Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Invesco Select 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 Invesco Select will offset losses from the drop in Invesco Select's long position.| Shelton Funds vs. Prudential Emerging Markets | Shelton Funds vs. Franklin Government Money | Shelton Funds vs. Davis Series | Shelton Funds vs. Pace Select Advisors |
| Invesco Select vs. Qs Global Equity | Invesco Select vs. T Rowe Price | Invesco Select vs. Us Global Investors | Invesco Select vs. Alliancebernstein Global Highome |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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