Correlation Between Growth Income and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Growth Income 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 Income 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 Income Fund and Shelton Funds , you can compare the effects of market volatilities on Growth Income 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 Income with a short position of Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Income and Shelton Funds.
Diversification Opportunities for Growth Income and Shelton Funds
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Shelton is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Growth Income Fund and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Growth Income 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 Income Fund 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 Income i.e., Growth Income and Shelton Funds go up and down completely randomly.
Pair Corralation between Growth Income and Shelton Funds
Assuming the 90 days horizon Growth Income Fund is expected to generate 0.77 times more return on investment than Shelton Funds. However, Growth Income Fund is 1.3 times less risky than Shelton Funds. It trades about 0.22 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.1 per unit of risk. If you would invest 3,348 in Growth Income Fund on August 28, 2024 and sell it today you would earn a total of 138.00 from holding Growth Income Fund or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Income Fund vs. Shelton Funds
Performance |
| Timeline |
| Growth Income |
| Shelton Funds |
Growth Income and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Income and Shelton Funds
The main advantage of trading using opposite Growth Income and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Income 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 Income vs. Counterpoint Tactical Municipal | Growth Income vs. Baird Strategic Municipal | Growth Income vs. Ishares Municipal Bond | Growth Income vs. Bbh Intermediate Municipal |
| Shelton Funds vs. Nasdaq 100 Index Fund | Shelton Funds vs. Fidelity Zero Large | Shelton Funds vs. Vanguard Russell 2000 | Shelton Funds vs. Parnassus Endeavor Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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