Correlation Between Scharf Global and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Credit Suisse 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 Credit Suisse 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 Credit Suisse Multialternative, you can compare the effects of market volatilities on Scharf Global and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Credit Suisse.
Diversification Opportunities for Scharf Global and Credit Suisse
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scharf and Credit is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Scharf Global i.e., Scharf Global and Credit Suisse go up and down completely randomly.
Pair Corralation between Scharf Global and Credit Suisse
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 3.23 times more return on investment than Credit Suisse. However, Scharf Global is 3.23 times more volatile than Credit Suisse Multialternative. It trades about 0.17 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.13 per unit of risk. If you would invest 3,533 in Scharf Global Opportunity on October 25, 2024 and sell it today you would earn a total of 74.00 from holding Scharf Global Opportunity or generate 2.09% 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. Credit Suisse Multialternative
Performance |
| Timeline |
| Scharf Global Opportunity |
| Credit Suisse Multia |
Scharf Global and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Credit Suisse
The main advantage of trading using opposite Scharf Global and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Scharf Global vs. Goldman Sachs Smallmid | Scharf Global vs. Sp Smallcap 600 | Scharf Global vs. Df Dent Small | Scharf Global vs. Small Pany Growth |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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