Correlation Between Shelton Funds and Growth Opportunities
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Growth Opportunities 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 Growth Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Growth Opportunities Fund, you can compare the effects of market volatilities on Shelton Funds and Growth Opportunities 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 Growth Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Growth Opportunities.
Diversification Opportunities for Shelton Funds and Growth Opportunities
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Shelton and GROWTH is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Growth Opportunities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Opportunities 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 Growth Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Opportunities has no effect on the direction of Shelton Funds i.e., Shelton Funds and Growth Opportunities go up and down completely randomly.
Pair Corralation between Shelton Funds and Growth Opportunities
Assuming the 90 days horizon Shelton Funds is expected to generate 1.26 times less return on investment than Growth Opportunities. In addition to that, Shelton Funds is 1.09 times more volatile than Growth Opportunities Fund. It trades about 0.08 of its total potential returns per unit of risk. Growth Opportunities Fund is currently generating about 0.11 per unit of volatility. If you would invest 5,060 in Growth Opportunities Fund on August 31, 2024 and sell it today you would earn a total of 796.00 from holding Growth Opportunities Fund or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Shelton Funds vs. Growth Opportunities Fund
Performance |
| Timeline |
| Shelton Funds |
| Growth Opportunities |
Shelton Funds and Growth Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Growth Opportunities
The main advantage of trading using opposite Shelton Funds and Growth Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Growth Opportunities 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 Growth Opportunities will offset losses from the drop in Growth Opportunities' 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 |
| Growth Opportunities vs. Europacific Growth Fund | Growth Opportunities vs. Washington Mutual Investors | Growth Opportunities vs. Capital World Growth | Growth Opportunities vs. HUMANA INC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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