Correlation Between Calvert Global and Scharf Global
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Scharf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Scharf Global Opportunity, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Scharf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Scharf Global.
Diversification Opportunities for Calvert Global and Scharf Global
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calvert and Scharf is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy 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 Calvert Global 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 Calvert Global Energy 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 Calvert Global i.e., Calvert Global and Scharf Global go up and down completely randomly.
Pair Corralation between Calvert Global and Scharf Global
Assuming the 90 days horizon Calvert Global Energy is expected to generate 1.26 times more return on investment than Scharf Global. However, Calvert Global is 1.26 times more volatile than Scharf Global Opportunity. It trades about 0.12 of its potential returns per unit of risk. Scharf Global Opportunity is currently generating about 0.0 per unit of risk. If you would invest 1,111 in Calvert Global Energy on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Calvert Global Energy or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Scharf Global Opportunity
Performance |
| Timeline |
| Calvert Global Energy |
| Scharf Global Opportunity |
Calvert Global and Scharf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Scharf Global
The main advantage of trading using opposite Calvert Global and Scharf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Short Duration | Calvert Global vs. Calvert International Responsible |
| Scharf Global vs. Invesco Energy Fund | Scharf Global vs. Goehring Rozencwajg Resources | Scharf Global vs. Oil Gas Ultrasector | Scharf Global vs. Jennison Natural Resources |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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