Correlation Between Shelton Green and Sextant Growth
Can any of the company-specific risk be diversified away by investing in both Shelton Green and Sextant Growth 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 Green and Sextant Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Green Alpha and Sextant Growth Fund, you can compare the effects of market volatilities on Shelton Green and Sextant Growth 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 Green with a short position of Sextant Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Green and Sextant Growth.
Diversification Opportunities for Shelton Green and Sextant Growth
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shelton and Sextant is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Green Alpha and Sextant Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant Growth and Shelton Green 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 Green Alpha are associated (or correlated) with Sextant Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant Growth has no effect on the direction of Shelton Green i.e., Shelton Green and Sextant Growth go up and down completely randomly.
Pair Corralation between Shelton Green and Sextant Growth
Assuming the 90 days horizon Shelton Green Alpha is expected to generate 0.88 times more return on investment than Sextant Growth. However, Shelton Green Alpha is 1.14 times less risky than Sextant Growth. It trades about -0.09 of its potential returns per unit of risk. Sextant Growth Fund is currently generating about -0.13 per unit of risk. If you would invest 3,066 in Shelton Green Alpha on December 29, 2024 and sell it today you would lose (190.00) from holding Shelton Green Alpha or give up 6.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Shelton Green Alpha vs. Sextant Growth Fund
Performance |
Timeline |
Shelton Green Alpha |
Sextant Growth |
Shelton Green and Sextant Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shelton Green and Sextant Growth
The main advantage of trading using opposite Shelton Green and Sextant Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Green position performs unexpectedly, Sextant Growth 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 Sextant Growth will offset losses from the drop in Sextant Growth's long position.Shelton Green vs. Firsthand Alternative Energy | Shelton Green vs. Guinness Atkinson Alternative | Shelton Green vs. New Alternatives Fund | Shelton Green vs. Ridgeworth Innovative Growth |
Sextant Growth vs. Sextant International Fund | Sextant Growth vs. Sextant Bond Income | Sextant Growth vs. Teton Westwood Equity | Sextant Growth vs. Value Line Premier |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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