Correlation Between Maingate Mlp and Shelton Green

Can any of the company-specific risk be diversified away by investing in both Maingate Mlp and Shelton Green 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 Maingate Mlp and Shelton Green into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maingate Mlp Fund and Shelton Green Alpha, you can compare the effects of market volatilities on Maingate Mlp and Shelton Green 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 Maingate Mlp with a short position of Shelton Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maingate Mlp and Shelton Green.

Diversification Opportunities for Maingate Mlp and Shelton Green

0.2

Correlation Coefficient

Maingate Mlp  Shelton Green

Modest diversification

The 3 months correlation between Maingate and Shelton is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Maingate Mlp Fund and Shelton Green Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Green Alpha and Maingate Mlp 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 Maingate Mlp Fund are associated (or correlated) with Shelton Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Green Alpha has no effect on the direction of Maingate Mlp i.e., Maingate Mlp and Shelton Green go up and down completely randomly.

Pair Corralation between Maingate Mlp and Shelton Green

Assuming the 90 days horizon Maingate Mlp Fund is expected to generate 1.12 times more return on investment than Shelton Green. However, Maingate Mlp is 1.12 times more volatile than Shelton Green Alpha. It trades about 0.23 of its potential returns per unit of risk. Shelton Green Alpha is currently generating about -0.03 per unit of risk. If you would invest  956.00  in Maingate Mlp Fund on October 20, 2024 and sell it today you would earn a total of  149.00  from holding Maingate Mlp Fund or generate 15.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Maingate Mlp Fund  vs.  Shelton Green Alpha

Maingate Mlp

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maingate Mlp Fund are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Maingate Mlp showed solid returns over the last few months and may actually be approaching a breakup point.

Shelton Green Alpha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shelton Green Alpha has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Shelton Green is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Maingate Mlp and Shelton Green

The main advantage of trading using opposite Maingate Mlp and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maingate Mlp position performs unexpectedly, Shelton Green 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 Green will offset losses from the drop in Shelton Green's long position.

The idea behind Maingate Mlp Fund and Shelton Green Alpha 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.