Correlation Between Shelton Funds and Payden Corporate
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Payden Corporate 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 Payden Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Payden Corporate Bond, you can compare the effects of market volatilities on Shelton Funds and Payden Corporate 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 Payden Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Payden Corporate.
Diversification Opportunities for Shelton Funds and Payden Corporate
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shelton and Payden is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Payden Corporate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Corporate Bond 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 Payden Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Corporate Bond has no effect on the direction of Shelton Funds i.e., Shelton Funds and Payden Corporate go up and down completely randomly.
Pair Corralation between Shelton Funds and Payden Corporate
Assuming the 90 days horizon Shelton Funds is expected to generate 3.13 times more return on investment than Payden Corporate. However, Shelton Funds is 3.13 times more volatile than Payden Corporate Bond. It trades about 0.07 of its potential returns per unit of risk. Payden Corporate Bond is currently generating about 0.09 per unit of risk. If you would invest 3,106 in Shelton Funds on August 31, 2024 and sell it today you would earn a total of 1,073 from holding Shelton Funds or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.29% |
| Values | Daily Returns |
Shelton Funds vs. Payden Corporate Bond
Performance |
| Timeline |
| Shelton Funds |
| Payden Corporate Bond |
Shelton Funds and Payden Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Payden Corporate
The main advantage of trading using opposite Shelton Funds and Payden Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Payden Corporate 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 Payden Corporate will offset losses from the drop in Payden Corporate's long position.| Shelton Funds vs. Ab Bond Inflation | Shelton Funds vs. American Funds Inflation | Shelton Funds vs. Aqr Managed Futures | Shelton Funds vs. Lord Abbett Inflation |
| Payden Corporate vs. Ab Value Fund | Payden Corporate vs. Volumetric Fund Volumetric | Payden Corporate vs. Shelton Funds | Payden Corporate vs. Vanguard Small Cap Growth |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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