Correlation Between Cliffwater Enhanced and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Cliffwater Enhanced 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 Cliffwater Enhanced and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cliffwater Enhanced Lending and Scharf Fund Retail, you can compare the effects of market volatilities on Cliffwater Enhanced 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 Cliffwater Enhanced with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cliffwater Enhanced and Scharf Fund.
Diversification Opportunities for Cliffwater Enhanced and Scharf Fund
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cliffwater and Scharf is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cliffwater Enhanced Lending 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 Cliffwater Enhanced 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 Cliffwater Enhanced Lending 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 Cliffwater Enhanced i.e., Cliffwater Enhanced and Scharf Fund go up and down completely randomly.
Pair Corralation between Cliffwater Enhanced and Scharf Fund
Assuming the 90 days horizon Cliffwater Enhanced Lending is expected to generate 0.44 times more return on investment than Scharf Fund. However, Cliffwater Enhanced Lending is 2.27 times less risky than Scharf Fund. It trades about -0.07 of its potential returns per unit of risk. Scharf Fund Retail is currently generating about -0.24 per unit of risk. If you would invest 1,098 in Cliffwater Enhanced Lending on October 9, 2024 and sell it today you would lose (13.00) from holding Cliffwater Enhanced Lending or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cliffwater Enhanced Lending vs. Scharf Fund Retail
Performance |
| Timeline |
| Cliffwater Enhanced |
| Scharf Fund Retail |
Cliffwater Enhanced and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cliffwater Enhanced and Scharf Fund
The main advantage of trading using opposite Cliffwater Enhanced and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cliffwater Enhanced 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.| Cliffwater Enhanced vs. Federated Global Allocation | Cliffwater Enhanced vs. Commonwealth Global Fund | Cliffwater Enhanced vs. Rbc Global Equity | Cliffwater Enhanced vs. Wisdomtree Siegel Global |
| Scharf Fund vs. Cardinal Small Cap | Scharf Fund vs. Lebenthal Lisanti Small | Scharf Fund vs. Rbc Small Cap | Scharf Fund vs. Ab Small Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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