Correlation Between Ab Select and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Ab Select and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Scharf Fund Retail, you can compare the effects of market volatilities on Ab Select 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 Ab Select with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Scharf Fund.
Diversification Opportunities for Ab Select and Scharf Fund
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUUIX and Scharf is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Ab Select 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 Ab Select Equity 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 Ab Select i.e., Ab Select and Scharf Fund go up and down completely randomly.
Pair Corralation between Ab Select and Scharf Fund
Assuming the 90 days horizon Ab Select Equity is expected to generate 1.0 times more return on investment than Scharf Fund. However, Ab Select is 1.0 times more volatile than Scharf Fund Retail. It trades about 0.13 of its potential returns per unit of risk. Scharf Fund Retail is currently generating about 0.06 per unit of risk. If you would invest 1,597 in Ab Select Equity on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Ab Select Equity or generate 50.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Scharf Fund Retail
Performance |
| Timeline |
| Ab Select Equity |
| Scharf Fund Retail |
Ab Select and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Scharf Fund
The main advantage of trading using opposite Ab Select and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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.| Ab Select vs. Fidelity Advisor Energy | Ab Select vs. Gamco Natural Resources | Ab Select vs. Hennessy Bp Energy | Ab Select vs. Alpsalerian Energy Infrastructure |
| Scharf Fund vs. Guidepath Managed Futures | Scharf Fund vs. Asg Managed Futures | Scharf Fund vs. Oklahoma College Savings | Scharf Fund vs. Blackrock Inflation Protected |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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