Correlation Between Shelton Funds and Ab Small
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Ab Small 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 Ab Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Ab Small Cap, you can compare the effects of market volatilities on Shelton Funds and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Ab Small.
Diversification Opportunities for Shelton Funds and Ab Small
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and SCAVX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Shelton Funds i.e., Shelton Funds and Ab Small go up and down completely randomly.
Pair Corralation between Shelton Funds and Ab Small
Assuming the 90 days horizon Shelton Funds is expected to generate 0.67 times more return on investment than Ab Small. However, Shelton Funds is 1.5 times less risky than Ab Small. It trades about 0.18 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.11 per unit of risk. If you would invest 4,072 in Shelton Funds on June 12, 2025 and sell it today you would earn a total of 364.00 from holding Shelton Funds or generate 8.94% 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. Ab Small Cap
Performance |
| Timeline |
| Shelton Funds |
| Ab Small Cap |
Shelton Funds and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Ab Small
The main advantage of trading using opposite Shelton Funds and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small's long position.| Shelton Funds vs. T Rowe Price | Shelton Funds vs. T Rowe Price | Shelton Funds vs. Rbb Fund | Shelton Funds vs. L Abbett Fundamental |
| Ab Small vs. Tfa Alphagen Growth | Ab Small vs. Ab Value Fund | Ab Small vs. T Rowe Price | Ab Small vs. T Rowe Price |
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.
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