Correlation Between Scharf Fund and Short-term Income
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Short-term Income 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 Short-term Income 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 Short Term Income Fund, you can compare the effects of market volatilities on Scharf Fund and Short-term Income 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 Short-term Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Short-term Income.
Diversification Opportunities for Scharf Fund and Short-term Income
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scharf and Short-term is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Short Term Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Income 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 Short-term Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Income has no effect on the direction of Scharf Fund i.e., Scharf Fund and Short-term Income go up and down completely randomly.
Pair Corralation between Scharf Fund and Short-term Income
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 12.95 times more return on investment than Short-term Income. However, Scharf Fund is 12.95 times more volatile than Short Term Income Fund. It trades about 0.14 of its potential returns per unit of risk. Short Term Income Fund is currently generating about 0.48 per unit of risk. If you would invest 5,480 in Scharf Fund Retail on September 3, 2024 and sell it today you would earn a total of 283.00 from holding Scharf Fund Retail or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Short Term Income Fund
Performance |
| Timeline |
| Scharf Fund Retail |
| Short Term Income |
Scharf Fund and Short-term Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Short-term Income
The main advantage of trading using opposite Scharf Fund and Short-term Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Short-term Income 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 Short-term Income will offset losses from the drop in Short-term Income's long position.| Scharf Fund vs. Angel Oak Financial | Scharf Fund vs. Icon Financial Fund | Scharf Fund vs. Mesirow Financial Small | Scharf Fund vs. Gabelli Global Financial |
| Short-term Income vs. The Fixed Income | Short-term Income vs. Scharf Fund Retail | Short-term Income vs. Cutler Equity | Short-term Income vs. Jpmorgan Equity Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |