Correlation Between Scharf Fund and Aam/himco Short
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Aam/himco Short 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 Aam/himco Short 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 Aamhimco Short Duration, you can compare the effects of market volatilities on Scharf Fund and Aam/himco Short 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 Aam/himco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Aam/himco Short.
Diversification Opportunities for Scharf Fund and Aam/himco Short
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Aam/himco is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Aamhimco Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamhimco Short Duration 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 Aam/himco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamhimco Short Duration has no effect on the direction of Scharf Fund i.e., Scharf Fund and Aam/himco Short go up and down completely randomly.
Pair Corralation between Scharf Fund and Aam/himco Short
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 3.65 times more return on investment than Aam/himco Short. However, Scharf Fund is 3.65 times more volatile than Aamhimco Short Duration. It trades about 0.11 of its potential returns per unit of risk. Aamhimco Short Duration is currently generating about 0.2 per unit of risk. If you would invest 5,097 in Scharf Fund Retail on October 20, 2024 and sell it today you would earn a total of 40.00 from holding Scharf Fund Retail or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Aamhimco Short Duration
Performance |
| Timeline |
| Scharf Fund Retail |
| Aamhimco Short Duration |
Scharf Fund and Aam/himco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Aam/himco Short
The main advantage of trading using opposite Scharf Fund and Aam/himco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Aam/himco Short 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 Aam/himco Short will offset losses from the drop in Aam/himco Short's long position.| Scharf Fund vs. Sp Midcap Index | Scharf Fund vs. Investec Emerging Markets | Scharf Fund vs. Inverse Emerging Markets | Scharf Fund vs. Fidelity New Markets |
| Aam/himco Short vs. Siit Ultra Short | Aam/himco Short vs. Leader Short Term Bond | Aam/himco Short vs. Cmg Ultra Short | Aam/himco Short vs. Alpine 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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