Correlation Between Scharf Fund and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Absolute, you can compare the effects of market volatilities on Scharf Fund and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Goldman Sachs.
Diversification Opportunities for Scharf Fund and Goldman Sachs
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scharf and Goldman is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Goldman Sachs Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Absolute 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Absolute has no effect on the direction of Scharf Fund i.e., Scharf Fund and Goldman Sachs go up and down completely randomly.
Pair Corralation between Scharf Fund and Goldman Sachs
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 1.88 times more return on investment than Goldman Sachs. However, Scharf Fund is 1.88 times more volatile than Goldman Sachs Absolute. It trades about 0.44 of its potential returns per unit of risk. Goldman Sachs Absolute is currently generating about 0.28 per unit of risk. If you would invest 5,428 in Scharf Fund Retail on September 1, 2024 and sell it today you would earn a total of 329.00 from holding Scharf Fund Retail or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Scharf Fund Retail vs. Goldman Sachs Absolute
Performance |
| Timeline |
| Scharf Fund Retail |
| Goldman Sachs Absolute |
Scharf Fund and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Goldman Sachs
The main advantage of trading using opposite Scharf Fund and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Scharf Fund vs. Guidepath Managed Futures | Scharf Fund vs. Asg Managed Futures | Scharf Fund vs. Oklahoma College Savings | Scharf Fund vs. Blackrock Inflation Protected |
| Goldman Sachs vs. Us Vector Equity | Goldman Sachs vs. The Gabelli Equity | Goldman Sachs vs. Scharf Fund Retail | Goldman Sachs vs. Sarofim 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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