Correlation Between Scharf Global and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Alger Capital 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 Global and Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Global Opportunity and Alger Capital Appreciation, you can compare the effects of market volatilities on Scharf Global and Alger Capital 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 Global with a short position of Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Alger Capital.
Diversification Opportunities for Scharf Global and Alger Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Alger is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Alger Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Capital Apprec and Scharf 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 Scharf Global Opportunity are associated (or correlated) with Alger Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Capital Apprec has no effect on the direction of Scharf Global i.e., Scharf Global and Alger Capital go up and down completely randomly.
Pair Corralation between Scharf Global and Alger Capital
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 1.45 times more return on investment than Alger Capital. However, Scharf Global is 1.45 times more volatile than Alger Capital Appreciation. It trades about 0.07 of its potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.03 per unit of risk. If you would invest 3,140 in Scharf Global Opportunity on September 12, 2024 and sell it today you would earn a total of 580.00 from holding Scharf Global Opportunity or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Alger Capital Appreciation
Performance |
| Timeline |
| Scharf Global Opportunity |
| Alger Capital Apprec |
Scharf Global and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Alger Capital
The main advantage of trading using opposite Scharf Global and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Alger Capital 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 Alger Capital will offset losses from the drop in Alger Capital's long position.| Scharf Global vs. Rbc Short Duration | Scharf Global vs. Delaware Investments Ultrashort | Scharf Global vs. Blackrock Short Term Inflat Protected | Scharf Global vs. Touchstone Ultra Short |
| Alger Capital vs. Calamos Dynamic Convertible | Alger Capital vs. Fidelity Sai Convertible | Alger Capital vs. Lord Abbett Convertible | Alger Capital vs. Rationalpier 88 Convertible |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |