Correlation Between Scharf Global and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Angel Oak 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 Angel Oak 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 Angel Oak Multi Strategy, you can compare the effects of market volatilities on Scharf Global and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Angel Oak.
Diversification Opportunities for Scharf Global and Angel Oak
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Angel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Multi has no effect on the direction of Scharf Global i.e., Scharf Global and Angel Oak go up and down completely randomly.
Pair Corralation between Scharf Global and Angel Oak
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 4.12 times more return on investment than Angel Oak. However, Scharf Global is 4.12 times more volatile than Angel Oak Multi Strategy. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.0 per unit of risk. If you would invest 3,665 in Scharf Global Opportunity on September 3, 2024 and sell it today you would earn a total of 164.00 from holding Scharf Global Opportunity or generate 4.47% 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. Angel Oak Multi Strategy
Performance |
| Timeline |
| Scharf Global Opportunity |
| Angel Oak Multi |
Scharf Global and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Angel Oak
The main advantage of trading using opposite Scharf Global and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Scharf Global vs. Prudential Jennison Financial | Scharf Global vs. 1919 Financial Services | Scharf Global vs. Mesirow Financial Small | Scharf Global vs. Gabelli Global Financial |
| Angel Oak vs. Bbh Intermediate Municipal | Angel Oak vs. Volumetric Fund Volumetric | Angel Oak vs. Scharf Global Opportunity | Angel Oak 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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