Correlation Between XRP and Shelton International

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

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

Diversification Opportunities for XRP and Shelton International

-0.74

Correlation Coefficient

XRP  Shelton International

Pay attention - limited upside

The 3 months correlation between XRP and Shelton is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Shelton International Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton International and XRP 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 XRP are associated (or correlated) with Shelton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton International has no effect on the direction of XRP i.e., XRP and Shelton International go up and down completely randomly.

Pair Corralation between XRP and Shelton International

Assuming the 90 days trading horizon XRP is expected to generate 5.32 times more return on investment than Shelton International. However, XRP is 5.32 times more volatile than Shelton International Select. It trades about 0.0 of its potential returns per unit of risk. Shelton International Select is currently generating about -0.36 per unit of risk. If you would invest  234.00  in XRP on October 12, 2024 and sell it today you would lose (7.00) from holding XRP or give up 2.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

XRP  vs.  Shelton International Select

XRP

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, XRP exhibited solid returns over the last few months and may actually be approaching a breakup point.

Shelton International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shelton International Select 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.

Pair Trading with XRP and Shelton International

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

The idea behind XRP and Shelton International Select 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.