Correlation Between Scharf Fund and Siit Large
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Siit Large 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 Siit Large 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 Siit Large Cap, you can compare the effects of market volatilities on Scharf Fund and Siit Large 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 Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Siit Large.
Diversification Opportunities for Scharf Fund and Siit Large
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scharf and Siit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap 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 Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Scharf Fund i.e., Scharf Fund and Siit Large go up and down completely randomly.
Pair Corralation between Scharf Fund and Siit Large
Assuming the 90 days horizon Scharf Fund is expected to generate 1.94 times less return on investment than Siit Large. But when comparing it to its historical volatility, Scharf Fund Retail is 1.16 times less risky than Siit Large. It trades about 0.05 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,233 in Siit Large Cap on September 15, 2024 and sell it today you would earn a total of 501.00 from holding Siit Large Cap or generate 40.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Siit Large Cap
Performance |
| Timeline |
| Scharf Fund Retail |
| Siit Large Cap |
Scharf Fund and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Siit Large
The main advantage of trading using opposite Scharf Fund and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large's long position.| Scharf Fund vs. Cmg Ultra Short | Scharf Fund vs. Blackrock Short Term Inflat Protected | Scharf Fund vs. Quantitative Longshort Equity | Scharf Fund vs. Virtus Multi Sector Short |
| Siit Large vs. Columbia Large Cap | Siit Large vs. T Rowe Price | Siit Large vs. Northern Stock Index | Siit Large vs. Siit Dynamic Asset |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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