Correlation Between Shelton Emerging and Locorr Market
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Locorr Market 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 Emerging and Locorr Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Locorr Market Trend, you can compare the effects of market volatilities on Shelton Emerging and Locorr Market 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 Emerging with a short position of Locorr Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Locorr Market.
Diversification Opportunities for Shelton Emerging and Locorr Market
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shelton and Locorr is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Locorr Market Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Market Trend and Shelton Emerging 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 Emerging Markets are associated (or correlated) with Locorr Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Market Trend has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Locorr Market go up and down completely randomly.
Pair Corralation between Shelton Emerging and Locorr Market
Assuming the 90 days horizon Shelton Emerging Markets is expected to generate 1.22 times more return on investment than Locorr Market. However, Shelton Emerging is 1.22 times more volatile than Locorr Market Trend. It trades about 0.16 of its potential returns per unit of risk. Locorr Market Trend is currently generating about 0.16 per unit of risk. If you would invest 1,921 in Shelton Emerging Markets on July 17, 2025 and sell it today you would earn a total of 198.00 from holding Shelton Emerging Markets or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Locorr Market Trend
Performance |
| Timeline |
| Shelton Emerging Markets |
| Locorr Market Trend |
Shelton Emerging and Locorr Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Locorr Market
The main advantage of trading using opposite Shelton Emerging and Locorr Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Locorr Market 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 Locorr Market will offset losses from the drop in Locorr Market's long position.| Shelton Emerging vs. Fidelity Advisor Emerging | Shelton Emerging vs. Fidelity Advisor Emerging | Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income |
| Locorr Market vs. Locorr Hedged Core | Locorr Market vs. Locorr Hedged Core | Locorr Market vs. Locorr Market Trend | Locorr Market vs. Locorr Spectrum Income |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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