Correlation Between Scharf Global and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Amg Managers 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 Amg Managers 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 Amg Managers Doubleline, you can compare the effects of market volatilities on Scharf Global and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Amg Managers.
Diversification Opportunities for Scharf Global and Amg Managers
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Amg is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Amg Managers Doubleline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Doubleline 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Doubleline has no effect on the direction of Scharf Global i.e., Scharf Global and Amg Managers go up and down completely randomly.
Pair Corralation between Scharf Global and Amg Managers
Assuming the 90 days horizon Scharf Global Opportunity is expected to under-perform the Amg Managers. In addition to that, Scharf Global is 1.57 times more volatile than Amg Managers Doubleline. It trades about -0.01 of its total potential returns per unit of risk. Amg Managers Doubleline is currently generating about 0.04 per unit of volatility. If you would invest 876.00 in Amg Managers Doubleline on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Amg Managers Doubleline or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Amg Managers Doubleline
Performance |
| Timeline |
| Scharf Global Opportunity |
| Amg Managers Doubleline |
Scharf Global and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Amg Managers
The main advantage of trading using opposite Scharf Global and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Scharf Global vs. Dreyfus Natural Resources | Scharf Global vs. Adams Natural Resources | Scharf Global vs. Gamco Natural Resources | Scharf Global vs. Firsthand Alternative Energy |
| Amg Managers vs. Scharf Global Opportunity | Amg Managers vs. Rbb Fund | Amg Managers vs. Rbc Microcap Value | Amg Managers vs. Balanced Fund Investor |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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