Correlation Between Shelton Funds and World Ex
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and World Ex 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 World Ex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and World Ex Val, you can compare the effects of market volatilities on Shelton Funds and World Ex 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 World Ex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and World Ex.
Diversification Opportunities for Shelton Funds and World Ex
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shelton and World is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and World Ex Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Ex Val 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 World Ex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Ex Val has no effect on the direction of Shelton Funds i.e., Shelton Funds and World Ex go up and down completely randomly.
Pair Corralation between Shelton Funds and World Ex
Assuming the 90 days horizon Shelton Funds is expected to generate 1.18 times more return on investment than World Ex. However, Shelton Funds is 1.18 times more volatile than World Ex Val. It trades about 0.17 of its potential returns per unit of risk. World Ex Val is currently generating about 0.19 per unit of risk. If you would invest 4,050 in Shelton Funds on June 9, 2025 and sell it today you would earn a total of 350.00 from holding Shelton Funds or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. World Ex Val
Performance |
| Timeline |
| Shelton Funds |
| World Ex Val |
Shelton Funds and World Ex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and World Ex
The main advantage of trading using opposite Shelton Funds and World Ex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, World Ex 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 World Ex will offset losses from the drop in World Ex's long position.| Shelton Funds vs. Vy Clarion Real | Shelton Funds vs. Prudential Real Estate | Shelton Funds vs. Global Real Estate | Shelton Funds vs. Simt Real Estate |
| World Ex vs. Intal High Relative | World Ex vs. Dfa International | World Ex vs. Dfa Inflation Protected | World Ex vs. Dfa International Small |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |