Correlation Between Shelton Green and Sp Smallcap

Can any of the company-specific risk be diversified away by investing in both Shelton Green and Sp Smallcap 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 Sp Smallcap 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 Sp Smallcap Index, you can compare the effects of market volatilities on Shelton Green and Sp Smallcap 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 Sp Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Green and Sp Smallcap.

Diversification Opportunities for Shelton Green and Sp Smallcap

0.0

Correlation Coefficient

Shelton Green  Sp Smallcap

Pay attention - limited upside

The 3 months correlation between Shelton and SMLKX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Green Alpha and Sp Smallcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp Smallcap Index 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 Sp Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp Smallcap Index has no effect on the direction of Shelton Green i.e., Shelton Green and Sp Smallcap go up and down completely randomly.

Pair Corralation between Shelton Green and Sp Smallcap

If you would invest  2,221  in Sp Smallcap Index on September 3, 2024 and sell it today you would earn a total of  54.00  from holding Sp Smallcap Index or generate 2.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Shelton Green Alpha  vs.  Sp Smallcap Index

Shelton Green Alpha

Risk-Adjusted Performance

0 of 100

OK

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 forward indicators, Shelton Green is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sp Smallcap Index

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sp Smallcap Index are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Sp Smallcap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shelton Green and Sp Smallcap

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

The idea behind Shelton Green Alpha and Sp Smallcap Index 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.