Correlation Between Keeley Small and Scharf Global
Can any of the company-specific risk be diversified away by investing in both Keeley Small 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 Keeley Small and Scharf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keeley Small Cap and Scharf Global Opportunity, you can compare the effects of market volatilities on Keeley Small 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 Keeley Small with a short position of Scharf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Small and Scharf Global.
Diversification Opportunities for Keeley Small and Scharf Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keeley and Scharf is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Small Cap 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 Keeley Small 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 Keeley Small Cap 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 Keeley Small i.e., Keeley Small and Scharf Global go up and down completely randomly.
Pair Corralation between Keeley Small and Scharf Global
Assuming the 90 days horizon Keeley Small is expected to generate 1.2 times less return on investment than Scharf Global. In addition to that, Keeley Small is 1.88 times more volatile than Scharf Global Opportunity. It trades about 0.03 of its total potential returns per unit of risk. Scharf Global Opportunity is currently generating about 0.07 per unit of volatility. If you would invest 2,943 in Scharf Global Opportunity on September 12, 2024 and sell it today you would earn a total of 777.00 from holding Scharf Global Opportunity or generate 26.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeley Small Cap vs. Scharf Global Opportunity
Performance |
| Timeline |
| Keeley Small Cap |
| Scharf Global Opportunity |
Keeley Small and Scharf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Small and Scharf Global
The main advantage of trading using opposite Keeley Small and Scharf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Small 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.| Keeley Small vs. Tfa Alphagen Growth | Keeley Small vs. Eip Growth And | Keeley Small vs. Small Pany Growth | Keeley Small vs. T Rowe Price |
| Scharf Global vs. Rbc Short Duration | Scharf Global vs. Delaware Investments Ultrashort | Scharf Global vs. Blackrock Short Term Inflat Protected | Scharf Global vs. Touchstone Ultra Short |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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