Correlation Between Gabelli Focus and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Focus 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 Gabelli Focus and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Focus and Scharf Fund Retail, you can compare the effects of market volatilities on Gabelli Focus 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 Gabelli Focus with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Focus and Scharf Fund.
Diversification Opportunities for Gabelli Focus and Scharf Fund
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Scharf is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Focus 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 Gabelli Focus 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 The Gabelli Focus 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 Gabelli Focus i.e., Gabelli Focus and Scharf Fund go up and down completely randomly.
Pair Corralation between Gabelli Focus and Scharf Fund
Assuming the 90 days horizon The Gabelli Focus is expected to generate 1.27 times more return on investment than Scharf Fund. However, Gabelli Focus is 1.27 times more volatile than Scharf Fund Retail. It trades about 0.05 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 1,139 in The Gabelli Focus on August 26, 2024 and sell it today you would earn a total of 271.00 from holding The Gabelli Focus or generate 23.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Focus vs. Scharf Fund Retail
Performance |
| Timeline |
| Gabelli Focus |
| Scharf Fund Retail |
Gabelli Focus and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Focus and Scharf Fund
The main advantage of trading using opposite Gabelli Focus and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Focus 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.| Gabelli Focus vs. Scharf Fund Retail | Gabelli Focus vs. Gmo Global Equity | Gabelli Focus vs. Gmo Equity Allocation | Gabelli Focus vs. Federated Equity Income |
| Scharf Fund vs. Small Cap Equity | Scharf Fund vs. Touchstone International Equity | Scharf Fund vs. Dodge International Stock | Scharf Fund vs. Ultra Short Term Fixed |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |