Correlation Between Voya Global and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Voya Global and Scharf Fund 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 Voya Global and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Equity and Scharf Fund Retail, you can compare the effects of market volatilities on Voya Global and Scharf Fund 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 Voya Global with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Scharf Fund.
Diversification Opportunities for Voya Global and Scharf Fund
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Scharf is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Equity and Scharf Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Fund Retail and Voya Global 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 Voya Global Equity are associated (or correlated) with Scharf Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Fund Retail has no effect on the direction of Voya Global i.e., Voya Global and Scharf Fund go up and down completely randomly.
Pair Corralation between Voya Global and Scharf Fund
Assuming the 90 days horizon Voya Global Equity is expected to generate 15.27 times more return on investment than Scharf Fund. However, Voya Global is 15.27 times more volatile than Scharf Fund Retail. It trades about 0.31 of its potential returns per unit of risk. Scharf Fund Retail is currently generating about 0.16 per unit of risk. If you would invest 4,168 in Voya Global Equity on November 30, 2024 and sell it today you would earn a total of 306.00 from holding Voya Global Equity or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Voya Global Equity vs. Scharf Fund Retail
Performance |
| Timeline |
| Voya Global Equity |
| Scharf Fund Retail |
Voya Global and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Scharf Fund
The main advantage of trading using opposite Voya Global and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Scharf Fund 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 Scharf Fund will offset losses from the drop in Scharf Fund's long position.| Voya Global vs. Harbor Vertible Securities | Voya Global vs. Gabelli Convertible And | Voya Global vs. Absolute Convertible Arbitrage | Voya Global vs. Rationalpier 88 Convertible |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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