Correlation Between Growth Fund and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Shelton Funds 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 Growth Fund and Shelton Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Shelton Funds , you can compare the effects of market volatilities on Growth Fund and Shelton Funds 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 Growth Fund with a short position of Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Shelton Funds.
Diversification Opportunities for Growth Fund and Shelton Funds
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GROWTH and Shelton is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Growth Fund 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 Growth Fund Of are associated (or correlated) with Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Growth Fund i.e., Growth Fund and Shelton Funds go up and down completely randomly.
Pair Corralation between Growth Fund and Shelton Funds
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.87 times more return on investment than Shelton Funds. However, Growth Fund Of is 1.15 times less risky than Shelton Funds. It trades about 0.2 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.12 per unit of risk. If you would invest 7,076 in Growth Fund Of on August 29, 2024 and sell it today you would earn a total of 309.00 from holding Growth Fund Of or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Shelton Funds
Performance |
| Timeline |
| Growth Fund |
| Shelton Funds |
Growth Fund and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Shelton Funds
The main advantage of trading using opposite Growth Fund and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' long position.| Growth Fund vs. Growth Fund Of | Growth Fund vs. HUMANA INC | Growth Fund vs. Aquagold International | Growth Fund vs. Barloworld Ltd ADR |
| Shelton Funds vs. Gamco Global Gold | Shelton Funds vs. Fidelity Advisor Gold | Shelton Funds vs. First Eagle Gold | Shelton Funds vs. Goldman Sachs Centrated |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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