Correlation Between Shelton International and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Shelton International and Amg Southernsun 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 International and Amg Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton International Select and Amg Southernsun Equity, you can compare the effects of market volatilities on Shelton International and Amg Southernsun 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 International with a short position of Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton International and Amg Southernsun.
Diversification Opportunities for Shelton International and Amg Southernsun
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shelton and Amg is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shelton International Select and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity and Shelton International 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 International Select are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Shelton International i.e., Shelton International and Amg Southernsun go up and down completely randomly.
Pair Corralation between Shelton International and Amg Southernsun
Assuming the 90 days horizon Shelton International Select is expected to generate 0.61 times more return on investment than Amg Southernsun. However, Shelton International Select is 1.65 times less risky than Amg Southernsun. It trades about 0.11 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.06 per unit of risk. If you would invest 2,710 in Shelton International Select on September 4, 2025 and sell it today you would earn a total of 268.00 from holding Shelton International Select or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton International Select vs. Amg Southernsun Equity
Performance |
| Timeline |
| Shelton International |
| Amg Southernsun Equity |
Shelton International and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton International and Amg Southernsun
The main advantage of trading using opposite Shelton International and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton International position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| Shelton International vs. Gmo Quality Fund | Shelton International vs. T Rowe Price | Shelton International vs. Locorr Market Trend | Shelton International vs. Vanguard High Yield Tax Exempt |
| Amg Southernsun vs. Amg Frontier Small | Amg Southernsun vs. Amg Frontier Small | Amg Southernsun vs. Amg Frontier Small | Amg Southernsun vs. Amg Gwk E |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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