Correlation Between Shelton Funds and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Shelton Funds and Intermediate-term 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 Intermediate-term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Funds and Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Shelton Funds and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Intermediate-term.
Diversification Opportunities for Shelton Funds and Intermediate-term
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and Intermediate-term is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Tax 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Shelton Funds i.e., Shelton Funds and Intermediate-term go up and down completely randomly.
Pair Corralation between Shelton Funds and Intermediate-term
Assuming the 90 days horizon Shelton Funds is expected to generate 5.46 times more return on investment than Intermediate-term. However, Shelton Funds is 5.46 times more volatile than Intermediate Term Tax Free Bond. It trades about 0.07 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.06 per unit of risk. If you would invest 2,797 in Shelton Funds on June 7, 2025 and sell it today you would earn a total of 1,557 from holding Shelton Funds or generate 55.67% 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. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Shelton Funds |
| Intermediate Term Tax |
Shelton Funds and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Funds and Intermediate-term
The main advantage of trading using opposite Shelton Funds and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Funds position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Shelton Funds vs. Nova Fund Class | Shelton Funds vs. Aston Montag Caldwell | Shelton Funds vs. Rational Strategic Allocation | Shelton Funds vs. Rbb Fund |
| Intermediate-term vs. Blackrock Pa Muni | Intermediate-term vs. Lord Abbett Intermediate | Intermediate-term vs. Morningstar Municipal Bond | Intermediate-term vs. Dreyfus Municipal Bond |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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