Correlation Between Scharf Fund and Great-west Lifetime
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Great-west Lifetime 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 Great-west Lifetime 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 Great West Lifetime 2020, you can compare the effects of market volatilities on Scharf Fund and Great-west Lifetime 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 Great-west Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Great-west Lifetime.
Diversification Opportunities for Scharf Fund and Great-west Lifetime
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Great-west is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Great West Lifetime 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifetime 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 Great-west Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifetime has no effect on the direction of Scharf Fund i.e., Scharf Fund and Great-west Lifetime go up and down completely randomly.
Pair Corralation between Scharf Fund and Great-west Lifetime
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 1.6 times more return on investment than Great-west Lifetime. However, Scharf Fund is 1.6 times more volatile than Great West Lifetime 2020. It trades about 0.06 of its potential returns per unit of risk. Great West Lifetime 2020 is currently generating about 0.06 per unit of risk. If you would invest 4,713 in Scharf Fund Retail on September 4, 2024 and sell it today you would earn a total of 1,050 from holding Scharf Fund Retail or generate 22.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Scharf Fund Retail vs. Great West Lifetime 2020
Performance |
| Timeline |
| Scharf Fund Retail |
| Great West Lifetime |
Scharf Fund and Great-west Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Great-west Lifetime
The main advantage of trading using opposite Scharf Fund and Great-west Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Great-west Lifetime 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 Great-west Lifetime will offset losses from the drop in Great-west Lifetime's long position.| Scharf Fund vs. Dana Large Cap | Scharf Fund vs. Qs Large Cap | Scharf Fund vs. Avantis Large Cap | Scharf Fund vs. Fidelity Series 1000 |
| Great-west Lifetime vs. Falcon Focus Scv | Great-west Lifetime vs. Abr 7525 Volatility | Great-west Lifetime vs. Rbc Microcap Value | Great-west Lifetime vs. Leggmason Partners Institutional |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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