Correlation Between Ab E and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Ab E 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 Ab E and Shelton Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab E Opportunities and Shelton Funds , you can compare the effects of market volatilities on Ab E 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 Ab E with a short position of Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab E and Shelton Funds.
Diversification Opportunities for Ab E and Shelton Funds
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ADGAX and Shelton is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab E Opportunities and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Ab E 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 Ab E Opportunities 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 Ab E i.e., Ab E and Shelton Funds go up and down completely randomly.
Pair Corralation between Ab E and Shelton Funds
Assuming the 90 days horizon Ab E Opportunities is expected to generate 0.84 times more return on investment than Shelton Funds. However, Ab E Opportunities is 1.19 times less risky than Shelton Funds. It trades about 0.24 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.2 per unit of risk. If you would invest 2,344 in Ab E Opportunities on May 31, 2025 and sell it today you would earn a total of 234.00 from holding Ab E Opportunities or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab E Opportunities vs. Shelton Funds
Performance |
| Timeline |
| Ab E Opportunities |
| Shelton Funds |
Ab E and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab E and Shelton Funds
The main advantage of trading using opposite Ab E and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab E 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.| Ab E vs. Growth Strategy Fund | Ab E vs. T Rowe Price | Ab E vs. Investec Emerging Markets | Ab E vs. Harding Loevner Emerging |
| Shelton Funds vs. Fkhemx | Shelton Funds vs. T Rowe Price | Shelton Funds vs. Ab Select Equity | Shelton Funds vs. Ips Strategic Capital |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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