Correlation Between Amg River and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Amg River and Scharf 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 Amg River and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Scharf Fund Retail, you can compare the effects of market volatilities on Amg River and Scharf 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 Amg River with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Scharf Fund.
Diversification Opportunities for Amg River and Scharf Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Scharf is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Scharf Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Fund Retail and Amg River 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 Amg River Road are associated (or correlated) with Scharf Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Fund Retail has no effect on the direction of Amg River i.e., Amg River and Scharf Fund go up and down completely randomly.
Pair Corralation between Amg River and Scharf Fund
Assuming the 90 days horizon Amg River Road is expected to generate 1.81 times more return on investment than Scharf Fund. However, Amg River is 1.81 times more volatile than Scharf Fund Retail. It trades about 0.37 of its potential returns per unit of risk. Scharf Fund Retail is currently generating about 0.32 per unit of risk. If you would invest 1,059 in Amg River Road on August 31, 2024 and sell it today you would earn a total of 109.00 from holding Amg River Road or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Scharf Fund Retail
Performance |
| Timeline |
| Amg River Road |
| Scharf Fund Retail |
Amg River and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Scharf Fund
The main advantage of trading using opposite Amg River and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Scharf 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 Scharf Fund will offset losses from the drop in Scharf Fund's long position.| Amg River vs. Scharf Fund Retail | Amg River vs. Us Vector Equity | Amg River vs. The Gabelli Equity | Amg River vs. Small Cap Equity |
| Scharf Fund vs. Aquagold International | Scharf Fund vs. Morningstar Unconstrained Allocation | Scharf Fund vs. Thrivent High Yield | Scharf Fund vs. Via Renewables |
Check out your portfolio center.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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