Correlation Between Scharf Fund and Ab Global
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Ab 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 Scharf Fund and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Fund Retail and Ab Global Bond, you can compare the effects of market volatilities on Scharf Fund and Ab 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 Scharf Fund with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Ab Global.
Diversification Opportunities for Scharf Fund and Ab Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and ANAIX is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Scharf Fund 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 Scharf Fund Retail are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Scharf Fund i.e., Scharf Fund and Ab Global go up and down completely randomly.
Pair Corralation between Scharf Fund and Ab Global
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 3.42 times more return on investment than Ab Global. However, Scharf Fund is 3.42 times more volatile than Ab Global Bond. It trades about 0.12 of its potential returns per unit of risk. Ab Global Bond is currently generating about -0.03 per unit of risk. If you would invest 5,513 in Scharf Fund Retail on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Scharf Fund Retail or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Ab Global Bond
Performance |
| Timeline |
| Scharf Fund Retail |
| Ab Global Bond |
Scharf Fund and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Ab Global
The main advantage of trading using opposite Scharf Fund and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Ab 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 Ab Global will offset losses from the drop in Ab Global's long position.| Scharf Fund vs. Ab Bond Inflation | Scharf Fund vs. Lord Abbett Inflation | Scharf Fund vs. Vy Blackrock Inflation | Scharf Fund vs. Simt Multi Asset Inflation |
| Ab Global vs. Ab Select Equity | Ab Global vs. Western Asset Diversified | Ab Global vs. Scharf Fund Retail | Ab Global vs. Dodge International Stock |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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