Correlation Between Scharf Fund and Ultra Fund
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Ultra 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 Scharf Fund and Ultra Fund 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 Ultra Fund R, you can compare the effects of market volatilities on Scharf Fund and Ultra 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 Scharf Fund with a short position of Ultra Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Ultra Fund.
Diversification Opportunities for Scharf Fund and Ultra Fund
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scharf and Ultra is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Ultra Fund R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Fund R 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 Ultra Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Fund R has no effect on the direction of Scharf Fund i.e., Scharf Fund and Ultra Fund go up and down completely randomly.
Pair Corralation between Scharf Fund and Ultra Fund
Assuming the 90 days horizon Scharf Fund Retail is expected to under-perform the Ultra Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Scharf Fund Retail is 1.72 times less risky than Ultra Fund. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Ultra Fund R is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,425 in Ultra Fund R on September 12, 2024 and sell it today you would earn a total of 228.00 from holding Ultra Fund R or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Ultra Fund R
Performance |
| Timeline |
| Scharf Fund Retail |
| Ultra Fund R |
Scharf Fund and Ultra Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Ultra Fund
The main advantage of trading using opposite Scharf Fund and Ultra Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Ultra 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 Ultra Fund will offset losses from the drop in Ultra Fund's long position.| Scharf Fund vs. Gmo Resources | Scharf Fund vs. Icon Natural Resources | Scharf Fund vs. Fidelity Advisor Energy | Scharf Fund vs. Oil Gas Ultrasector |
| Ultra Fund vs. Ab Select Equity | Ultra Fund vs. Locorr Dynamic Equity | Ultra Fund vs. Scharf Fund Retail | Ultra Fund vs. Qs Global Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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