Correlation Between Shelton Funds and Mfs Variable

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

By analyzing existing cross correlation between Shelton Funds and Mfs Variable Insurance, you can compare the effects of market volatilities on Shelton Funds and Mfs Variable 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 Mfs Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Funds and Mfs Variable.

Diversification Opportunities for Shelton Funds and Mfs Variable

-0.13

Correlation Coefficient

Shelton Funds  Mfs Variable

Good diversification

The 3 months correlation between Shelton and Mfs is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and Mfs Variable Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Variable Insurance 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 Mfs Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Variable Insurance has no effect on the direction of Shelton Funds i.e., Shelton Funds and Mfs Variable go up and down completely randomly.

Pair Corralation between Shelton Funds and Mfs Variable

Assuming the 90 days horizon Shelton Funds is expected to generate 1.36 times more return on investment than Mfs Variable. However, Shelton Funds is 1.36 times more volatile than Mfs Variable Insurance. It trades about 0.06 of its potential returns per unit of risk. Mfs Variable Insurance is currently generating about -0.13 per unit of risk. If you would invest  3,894  in Shelton Funds on September 18, 2024 and sell it today you would earn a total of  159.00  from holding Shelton Funds or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Shelton Funds   vs.  Mfs Variable Insurance

Shelton Funds

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Shelton Funds are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Shelton Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mfs Variable Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Shelton Funds and Mfs Variable

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

The idea behind Shelton Funds and Mfs Variable Insurance 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.