Correlation Between Shelton Funds and Multisector Bond
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Multisector Bond 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 Multisector Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Multisector Bond Sma, you can compare the effects of market volatilities on Shelton Funds and Multisector Bond 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 Multisector Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Multisector Bond.
Diversification Opportunities for Shelton Funds and Multisector Bond
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shelton and Multisector is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Multisector Bond Sma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multisector Bond Sma 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 Multisector Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multisector Bond Sma has no effect on the direction of Shelton Funds i.e., Shelton Funds and Multisector Bond go up and down completely randomly.
Pair Corralation between Shelton Funds and Multisector Bond
Assuming the 90 days horizon Shelton Funds is expected to generate 2.59 times more return on investment than Multisector Bond. However, Shelton Funds is 2.59 times more volatile than Multisector Bond Sma. It trades about 0.28 of its potential returns per unit of risk. Multisector Bond Sma is currently generating about 0.3 per unit of risk. If you would invest 4,077 in Shelton Funds on April 15, 2025 and sell it today you would earn a total of 158.00 from holding Shelton Funds or generate 3.88% 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. Multisector Bond Sma
Performance |
| Timeline |
| Shelton Funds |
| Multisector Bond Sma |
Shelton Funds and Multisector Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Multisector Bond
The main advantage of trading using opposite Shelton Funds and Multisector Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Multisector Bond 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 Multisector Bond will offset losses from the drop in Multisector Bond's long position.| Shelton Funds vs. Nasdaq 100 Fund Class | Shelton Funds vs. Nasdaq 100 Fund Class | Shelton Funds vs. Nasdaq 100 2x Strategy | Shelton Funds vs. Select Fund R |
| Multisector Bond vs. Dreyfus Large Cap | Multisector Bond vs. Cb Large Cap | Multisector Bond vs. Prudential Qma Large Cap | Multisector Bond vs. Profunds Large Cap Growth |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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