Correlation Between Shelton Emerging and Ing Series

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Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Ing Series 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 Emerging and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Ing Series Fund, you can compare the effects of market volatilities on Shelton Emerging and Ing Series 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 Emerging with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Ing Series.

Diversification Opportunities for Shelton Emerging and Ing Series

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Shelton and Ing is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Ing Series Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Series Fund and Shelton Emerging 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 Emerging Markets are associated (or correlated) with Ing Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Series Fund has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Ing Series go up and down completely randomly.

Pair Corralation between Shelton Emerging and Ing Series

Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Ing Series. But the mutual fund apears to be less risky and, when comparing its historical volatility, Shelton Emerging Markets is 1.1 times less risky than Ing Series. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Ing Series Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,303  in Ing Series Fund on October 8, 2024 and sell it today you would earn a total of  113.00  from holding Ing Series Fund or generate 8.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Shelton Emerging Markets  vs.  Ing Series Fund

 Performance 
       Timeline  
Shelton Emerging Markets 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shelton Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
Ing Series Fund 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Ing Series Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Ing Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shelton Emerging and Ing Series Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shelton Emerging and Ing Series

The main advantage of trading using opposite Shelton Emerging and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Ing Series 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 Ing Series will offset losses from the drop in Ing Series' long position.
The idea behind Shelton Emerging Markets and Ing Series Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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