Correlation Between Shelton Funds and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Tiaa Cref 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 Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Tiaa Cref Lifecycle 2055, you can compare the effects of market volatilities on Shelton Funds and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Tiaa Cref.
Diversification Opportunities for Shelton Funds and Tiaa Cref
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shelton and Tiaa is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Tiaa Cref Lifecycle 2055 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Shelton Funds i.e., Shelton Funds and Tiaa Cref go up and down completely randomly.
Pair Corralation between Shelton Funds and Tiaa Cref
Assuming the 90 days horizon Shelton Funds is expected to generate 1.61 times more return on investment than Tiaa Cref. However, Shelton Funds is 1.61 times more volatile than Tiaa Cref Lifecycle 2055. It trades about 0.1 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2055 is currently generating about 0.09 per unit of risk. If you would invest 2,314 in Shelton Funds on September 16, 2024 and sell it today you would earn a total of 1,739 from holding Shelton Funds or generate 75.15% 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. Tiaa Cref Lifecycle 2055
Performance |
| Timeline |
| Shelton Funds |
| Tiaa Cref Lifecycle |
Shelton Funds and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Tiaa Cref
The main advantage of trading using opposite Shelton Funds and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Shelton Funds vs. Shelton Emerging Markets | Shelton Funds vs. Shelton Emerging Markets | Shelton Funds vs. California Tax Free Income | Shelton Funds vs. Nasdaq 100 Index Fund |
| Tiaa Cref vs. Nasdaq 100 Index Fund | Tiaa Cref vs. Shelton Funds | Tiaa Cref vs. Rbc Funds Trust | Tiaa Cref vs. Semiconductor Ultrasector Profund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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