Correlation Between Scharf Fund and Guggenheim Market
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Guggenheim Market 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 Guggenheim Market 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 Guggenheim Market Neutral, you can compare the effects of market volatilities on Scharf Fund and Guggenheim Market 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 Guggenheim Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Guggenheim Market.
Diversification Opportunities for Scharf Fund and Guggenheim Market
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Guggenheim is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Guggenheim Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Market Neutral 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 Guggenheim Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Market Neutral has no effect on the direction of Scharf Fund i.e., Scharf Fund and Guggenheim Market go up and down completely randomly.
Pair Corralation between Scharf Fund and Guggenheim Market
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 3.24 times more return on investment than Guggenheim Market. However, Scharf Fund is 3.24 times more volatile than Guggenheim Market Neutral. It trades about 0.08 of its potential returns per unit of risk. Guggenheim Market Neutral is currently generating about -0.02 per unit of risk. If you would invest 4,964 in Scharf Fund Retail on September 14, 2024 and sell it today you would earn a total of 588.00 from holding Scharf Fund Retail or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Guggenheim Market Neutral
Performance |
| Timeline |
| Scharf Fund Retail |
| Guggenheim Market Neutral |
Scharf Fund and Guggenheim Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Guggenheim Market
The main advantage of trading using opposite Scharf Fund and Guggenheim Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Guggenheim Market 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 Guggenheim Market will offset losses from the drop in Guggenheim Market's long position.| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. American Funds 2060 |
| Guggenheim Market vs. Allianzgi Convertible Income | Guggenheim Market vs. Putnam Convertible Incm Gwth | Guggenheim Market vs. Gabelli Convertible And | Guggenheim Market vs. Absolute Convertible Arbitrage |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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