Correlation Between Shelton Funds and Tocqueville Fund

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

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

Diversification Opportunities for Shelton Funds and Tocqueville Fund

0.91

Correlation Coefficient

Shelton Funds  Tocqueville Fund

Almost no diversification

The 3 months correlation between Shelton and Tocqueville is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Funds and The Tocqueville Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tocqueville Fund 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 Tocqueville Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tocqueville Fund has no effect on the direction of Shelton Funds i.e., Shelton Funds and Tocqueville Fund go up and down completely randomly.

Pair Corralation between Shelton Funds and Tocqueville Fund

Assuming the 90 days horizon Shelton Funds is expected to generate 1.15 times less return on investment than Tocqueville Fund. In addition to that, Shelton Funds is 1.12 times more volatile than The Tocqueville Fund. It trades about 0.09 of its total potential returns per unit of risk. The Tocqueville Fund is currently generating about 0.12 per unit of volatility. If you would invest  5,191  in The Tocqueville Fund on September 2, 2025 and sell it today you would earn a total of  378.00  from holding The Tocqueville Fund or generate 7.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Shelton Funds   vs.  The Tocqueville Fund

Shelton Funds

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Shelton Funds are ranked lower than 7 (%) 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.

Tocqueville Fund

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Tocqueville Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tocqueville Fund may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Shelton Funds and Tocqueville Fund

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

The idea behind Shelton Funds and The Tocqueville Fund 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.