Correlation Between Shelton Funds and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Prudential Jennison 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 Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Prudential Jennison Small, you can compare the effects of market volatilities on Shelton Funds and Prudential Jennison 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 Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Prudential Jennison.
Diversification Opportunities for Shelton Funds and Prudential Jennison
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and Prudential is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Prudential Jennison Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison Small 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 Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison Small has no effect on the direction of Shelton Funds i.e., Shelton Funds and Prudential Jennison go up and down completely randomly.
Pair Corralation between Shelton Funds and Prudential Jennison
Assuming the 90 days horizon Shelton Funds is expected to generate 0.88 times more return on investment than Prudential Jennison. However, Shelton Funds is 1.14 times less risky than Prudential Jennison. It trades about 0.17 of its potential returns per unit of risk. Prudential Jennison Small is currently generating about 0.13 per unit of risk. If you would invest 4,024 in Shelton Funds on June 3, 2025 and sell it today you would earn a total of 330.00 from holding Shelton Funds or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Funds vs. Prudential Jennison Small
Performance |
| Timeline |
| Shelton Funds |
| Prudential Jennison Small |
Shelton Funds and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Prudential Jennison
The main advantage of trading using opposite Shelton Funds and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Shelton Funds vs. Blackrock Government Bond | Shelton Funds vs. Short Term Government Fund | Shelton Funds vs. Federated Government Income | Shelton Funds vs. Virtus Seix Government |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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