Correlation Between Scharf Fund and Payden Rygel
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Payden Rygel 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 Payden Rygel 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 The Payden Rygel, you can compare the effects of market volatilities on Scharf Fund and Payden Rygel 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 Payden Rygel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Payden Rygel.
Diversification Opportunities for Scharf Fund and Payden Rygel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Payden is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and The Payden Rygel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Rygel 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 Payden Rygel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Rygel has no effect on the direction of Scharf Fund i.e., Scharf Fund and Payden Rygel go up and down completely randomly.
Pair Corralation between Scharf Fund and Payden Rygel
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 1.81 times more return on investment than Payden Rygel. However, Scharf Fund is 1.81 times more volatile than The Payden Rygel. It trades about 0.13 of its potential returns per unit of risk. The Payden Rygel is currently generating about 0.11 per unit of risk. If you would invest 5,220 in Scharf Fund Retail on September 5, 2024 and sell it today you would earn a total of 519.00 from holding Scharf Fund Retail or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Scharf Fund Retail vs. The Payden Rygel
Performance |
| Timeline |
| Scharf Fund Retail |
| Payden Rygel |
Scharf Fund and Payden Rygel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Payden Rygel
The main advantage of trading using opposite Scharf Fund and Payden Rygel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Payden Rygel 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 Payden Rygel will offset losses from the drop in Payden Rygel's long position.| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Fiera Capital Global |
| Payden Rygel vs. Payden Porate Bond | Payden Rygel vs. Payden Absolute Return | Payden Rygel vs. Payden Absolute Return | Payden Rygel vs. Payden Emerging Markets |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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