Correlation Between Scharf Global and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Astor Long/short 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 Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Scharf Global and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Astor Long/short.
Diversification Opportunities for Scharf Global and Astor Long/short
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scharf and Astor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Scharf Global i.e., Scharf Global and Astor Long/short go up and down completely randomly.
Pair Corralation between Scharf Global and Astor Long/short
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 1.57 times more return on investment than Astor Long/short. However, Scharf Global is 1.57 times more volatile than Astor Longshort Fund. It trades about 0.42 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.46 per unit of risk. If you would invest 3,640 in Scharf Global Opportunity on September 2, 2024 and sell it today you would earn a total of 189.00 from holding Scharf Global Opportunity or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Astor Longshort Fund
Performance |
| Timeline |
| Scharf Global Opportunity |
| Astor Long/short |
Scharf Global and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Astor Long/short
The main advantage of trading using opposite Scharf Global and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Scharf Fund Retail | Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Virtus Allianzgi Artificial |
| Astor Long/short vs. Fidelity Series Government | Astor Long/short vs. Government Securities Fund | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Dreyfus Government Cash |
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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