Correlation Between Scharf Fund and Real Estate
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Real Estate 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 Real Estate 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 Real Estate Securities, you can compare the effects of market volatilities on Scharf Fund and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Real Estate.
Diversification Opportunities for Scharf Fund and Real Estate
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scharf and Real is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Real Estate Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Securities 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Securities has no effect on the direction of Scharf Fund i.e., Scharf Fund and Real Estate go up and down completely randomly.
Pair Corralation between Scharf Fund and Real Estate
Assuming the 90 days horizon Scharf Fund Retail is expected to under-perform the Real Estate. But the mutual fund apears to be less risky and, when comparing its historical volatility, Scharf Fund Retail is 1.35 times less risky than Real Estate. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Real Estate Securities is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,985 in Real Estate Securities on September 13, 2024 and sell it today you would lose (3.00) from holding Real Estate Securities or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Real Estate Securities
Performance |
| Timeline |
| Scharf Fund Retail |
| Real Estate Securities |
Scharf Fund and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Real Estate
The main advantage of trading using opposite Scharf Fund and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate'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 |
| Real Estate vs. Angel Oak Financial | Real Estate vs. Royce Global Financial | Real Estate vs. Gabelli Global Financial | Real Estate vs. John Hancock Financial |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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