Correlation Between Shelton Funds and Pioneer Global

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

By analyzing existing cross correlation between Shelton Funds and Pioneer Global Sustainable, you can compare the effects of market volatilities on Shelton Funds and Pioneer Global 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 Funds with a short position of Pioneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Pioneer Global.

Diversification Opportunities for Shelton Funds and Pioneer Global

-0.38

Correlation Coefficient

Shelton Funds  Pioneer Global

Very good diversification

The 3 months correlation between Shelton and Pioneer is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Pioneer Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Global Susta and Shelton Funds 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 Funds are associated (or correlated) with Pioneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Global Susta has no effect on the direction of Shelton Funds i.e., Shelton Funds and Pioneer Global go up and down completely randomly.

Pair Corralation between Shelton Funds and Pioneer Global

Assuming the 90 days horizon Shelton Funds is expected to under-perform the Pioneer Global. In addition to that, Shelton Funds is 1.87 times more volatile than Pioneer Global Sustainable. It trades about -0.1 of its total potential returns per unit of risk. Pioneer Global Sustainable is currently generating about 0.18 per unit of volatility. If you would invest  1,137  in Pioneer Global Sustainable on December 22, 2024 and sell it today you would earn a total of  93.00  from holding Pioneer Global Sustainable or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shelton Funds   vs.  Pioneer Global Sustainable

Shelton Funds

Risk-Adjusted Performance

Very Weak

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

Pioneer Global Susta

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Global Sustainable are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pioneer Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Shelton Funds and Pioneer Global

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

The idea behind Shelton Funds and Pioneer Global Sustainable 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.