Correlation Between Scharf Fund and James Alpha
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and James Alpha 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 James Alpha 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 James Alpha Hedged, you can compare the effects of market volatilities on Scharf Fund and James Alpha 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 James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and James Alpha.
Diversification Opportunities for Scharf Fund and James Alpha
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scharf and James is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and James Alpha Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Hedged 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 James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Hedged has no effect on the direction of Scharf Fund i.e., Scharf Fund and James Alpha go up and down completely randomly.
Pair Corralation between Scharf Fund and James Alpha
If you would invest 5,461 in Scharf Fund Retail on September 2, 2024 and sell it today you would earn a total of 302.00 from holding Scharf Fund Retail or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. James Alpha Hedged
Performance |
| Timeline |
| Scharf Fund Retail |
| James Alpha Hedged |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scharf Fund and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and James Alpha
The main advantage of trading using opposite Scharf Fund and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Sp Smallcap 600 |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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