Correlation Between Scharf Fund and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Oppenheimer International 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 Oppenheimer International 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 Oppenheimer International Diversified, you can compare the effects of market volatilities on Scharf Fund and Oppenheimer International 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Oppenheimer International.
Diversification Opportunities for Scharf Fund and Oppenheimer International
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scharf and Oppenheimer is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Scharf Fund i.e., Scharf Fund and Oppenheimer International go up and down completely randomly.
Pair Corralation between Scharf Fund and Oppenheimer International
Assuming the 90 days horizon Scharf Fund Retail is expected to under-perform the Oppenheimer International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Scharf Fund Retail is 1.04 times less risky than Oppenheimer International. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Oppenheimer International Diversified is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,624 in Oppenheimer International Diversified on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Oppenheimer International Diversified or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Oppenheimer International Dive
Performance |
| Timeline |
| Scharf Fund Retail |
| Oppenheimer International |
Scharf Fund and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Oppenheimer International
The main advantage of trading using opposite Scharf Fund and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Oppenheimer International 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| Scharf Fund vs. Barings Emerging Markets | Scharf Fund vs. Extended Market Index | Scharf Fund vs. T Rowe Price | Scharf Fund vs. Western Asset Diversified |
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 Stocks Directory module to find actively traded stocks across global markets.
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