Correlation Between Blackrock Inflation and Shelton Funds

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

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

Diversification Opportunities for Blackrock Inflation and Shelton Funds

-0.36

Correlation Coefficient

Blackrock Inflation  Shelton Funds

Very good diversification

The 3 months correlation between Blackrock and Shelton is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Inflation Protected and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds and Blackrock Inflation 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 Blackrock Inflation Protected are associated (or correlated) with Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Blackrock Inflation i.e., Blackrock Inflation and Shelton Funds go up and down completely randomly.

Pair Corralation between Blackrock Inflation and Shelton Funds

Assuming the 90 days horizon Blackrock Inflation Protected is expected to under-perform the Shelton Funds. But the mutual fund apears to be less risky and, when comparing its historical volatility, Blackrock Inflation Protected is 6.8 times less risky than Shelton Funds. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Shelton Funds is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4,339  in Shelton Funds on October 6, 2025 and sell it today you would earn a total of  205.00  from holding Shelton Funds or generate 4.72% return on investment over 90 days.

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

Blackrock Inflation Protected  vs.  Shelton Funds

Blackrock Inflation

Risk-Adjusted Performance

Weakest

Over the last 90 days Blackrock Inflation Protected has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Blackrock Inflation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shelton Funds

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Shelton Funds are ranked lower than 5 (%) 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.

Pair Trading with Blackrock Inflation and Shelton Funds

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

The idea behind Blackrock Inflation Protected and Shelton Funds 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.