Correlation Between Vanguard High-yield and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Vanguard High-yield and Shelton Funds 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 Vanguard High-yield and Shelton Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard High Yield Tax Exempt and Shelton Funds , you can compare the effects of market volatilities on Vanguard High-yield and Shelton Funds 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 Vanguard High-yield with a short position of Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard High-yield and Shelton Funds.
Diversification Opportunities for Vanguard High-yield and Shelton Funds
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VANGUARD and Shelton is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard High Yield Tax Exempt and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Vanguard High-yield 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 Vanguard High Yield Tax Exempt are associated (or correlated) with Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Vanguard High-yield i.e., Vanguard High-yield and Shelton Funds go up and down completely randomly.
Pair Corralation between Vanguard High-yield and Shelton Funds
Assuming the 90 days horizon Vanguard High-yield is expected to generate 4.31 times less return on investment than Shelton Funds. But when comparing it to its historical volatility, Vanguard High Yield Tax Exempt is 7.68 times less risky than Shelton Funds. It trades about 0.28 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,125 in Shelton Funds on September 7, 2025 and sell it today you would earn a total of 503.00 from holding Shelton Funds or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard High Yield Tax Exempt vs. Shelton Funds
Performance |
| Timeline |
| Vanguard High Yield |
| Shelton Funds |
Vanguard High-yield and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard High-yield and Shelton Funds
The main advantage of trading using opposite Vanguard High-yield and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard High-yield position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' long position.| Vanguard High-yield vs. Rbc Emerging Markets | Vanguard High-yield vs. Crafword Dividend Growth | Vanguard High-yield vs. Locorr Market Trend | Vanguard High-yield vs. Western Asset Municipal |
| Shelton Funds vs. Global Real Estate | Shelton Funds vs. Jhancock Real Estate | Shelton Funds vs. Redwood Real Estate | Shelton Funds vs. Franklin Real Estate |
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 CEOs Directory module to screen CEOs from public companies around the world.
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