Correlation Between Shelton Funds and Simt Large
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Simt Large 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 Simt Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Simt Large Cap, you can compare the effects of market volatilities on Shelton Funds and Simt Large 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 Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Simt Large.
Diversification Opportunities for Shelton Funds and Simt Large
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Shelton and Simt is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large 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 Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Shelton Funds i.e., Shelton Funds and Simt Large go up and down completely randomly.
Pair Corralation between Shelton Funds and Simt Large
Assuming the 90 days horizon Shelton Funds is expected to generate 1.61 times less return on investment than Simt Large. In addition to that, Shelton Funds is 1.17 times more volatile than Simt Large Cap. It trades about 0.04 of its total potential returns per unit of risk. Simt Large Cap is currently generating about 0.08 per unit of volatility. If you would invest 2,938 in Simt Large Cap on April 1, 2025 and sell it today you would earn a total of 1,645 from holding Simt Large Cap or generate 55.99% 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. Simt Large Cap
Performance |
| Timeline |
| Shelton Funds |
| Simt Large Cap |
Shelton Funds and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Simt Large
The main advantage of trading using opposite Shelton Funds and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Shelton Funds vs. Prudential High Yield | Shelton Funds vs. Prudential High Yield | Shelton Funds vs. Ab High Income | Shelton Funds vs. Gmo High Yield |
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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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