Correlation Between Astor Long/short and Scharf Global
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Scharf Global 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 Astor Long/short and Scharf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Scharf Global Opportunity, you can compare the effects of market volatilities on Astor Long/short and Scharf Global 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 Astor Long/short with a short position of Scharf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Scharf Global.
Diversification Opportunities for Astor Long/short and Scharf Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Scharf is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Scharf Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Global Opportunity and Astor Long/short 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 Astor Longshort Fund are associated (or correlated) with Scharf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Global Opportunity has no effect on the direction of Astor Long/short i.e., Astor Long/short and Scharf Global go up and down completely randomly.
Pair Corralation between Astor Long/short and Scharf Global
Assuming the 90 days horizon Astor Long/short is expected to generate 1.33 times less return on investment than Scharf Global. But when comparing it to its historical volatility, Astor Longshort Fund is 1.86 times less risky than Scharf Global. It trades about 0.11 of its potential returns per unit of risk. Scharf Global Opportunity is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,008 in Scharf Global Opportunity on September 2, 2024 and sell it today you would earn a total of 821.00 from holding Scharf Global Opportunity or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Scharf Global Opportunity
Performance |
| Timeline |
| Astor Long/short |
| Scharf Global Opportunity |
Astor Long/short and Scharf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Scharf Global
The main advantage of trading using opposite Astor Long/short and Scharf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Scharf Global 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 Global will offset losses from the drop in Scharf Global's long position.| Astor Long/short vs. Fidelity Series Government | Astor Long/short vs. Government Securities Fund | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Dreyfus Government Cash |
| Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Scharf Fund Retail | Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Virtus Allianzgi Artificial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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