Correlation Between Scharf Fund and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Freedom, you can compare the effects of market volatilities on Scharf Fund and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Fidelity Advisor.
Diversification Opportunities for Scharf Fund and Fidelity Advisor
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scharf and Fidelity is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Fidelity Advisor Freedom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Freedom 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Freedom has no effect on the direction of Scharf Fund i.e., Scharf Fund and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Scharf Fund and Fidelity Advisor
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 1.89 times more return on investment than Fidelity Advisor. However, Scharf Fund is 1.89 times more volatile than Fidelity Advisor Freedom. It trades about 0.14 of its potential returns per unit of risk. Fidelity Advisor Freedom is currently generating about 0.1 per unit of risk. If you would invest 5,211 in Scharf Fund Retail on September 3, 2024 and sell it today you would earn a total of 552.00 from holding Scharf Fund Retail or generate 10.59% 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. Fidelity Advisor Freedom
Performance |
| Timeline |
| Scharf Fund Retail |
| Fidelity Advisor Freedom |
Scharf Fund and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Fidelity Advisor
The main advantage of trading using opposite Scharf Fund and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Scharf Fund vs. Angel Oak Financial | Scharf Fund vs. Icon Financial Fund | Scharf Fund vs. Mesirow Financial Small | Scharf Fund vs. Gabelli Global Financial |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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