Correlation Between Scharf Global and Dunham Appreciation
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Dunham Appreciation 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 Dunham Appreciation 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 Dunham Appreciation Income, you can compare the effects of market volatilities on Scharf Global and Dunham Appreciation 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 Dunham Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Dunham Appreciation.
Diversification Opportunities for Scharf Global and Dunham Appreciation
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scharf and Dunham is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Dunham Appreciation Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Appreciation 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 Dunham Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Appreciation has no effect on the direction of Scharf Global i.e., Scharf Global and Dunham Appreciation go up and down completely randomly.
Pair Corralation between Scharf Global and Dunham Appreciation
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 5.62 times more return on investment than Dunham Appreciation. However, Scharf Global is 5.62 times more volatile than Dunham Appreciation Income. It trades about 0.08 of its potential returns per unit of risk. Dunham Appreciation Income is currently generating about 0.08 per unit of risk. If you would invest 3,007 in Scharf Global Opportunity on September 3, 2024 and sell it today you would earn a total of 822.00 from holding Scharf Global Opportunity or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Dunham Appreciation Income
Performance |
| Timeline |
| Scharf Global Opportunity |
| Dunham Appreciation |
Scharf Global and Dunham Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Dunham Appreciation
The main advantage of trading using opposite Scharf Global and Dunham Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Dunham Appreciation 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 Dunham Appreciation will offset losses from the drop in Dunham Appreciation'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 |
| Dunham Appreciation vs. Fa 529 Aggressive | Dunham Appreciation vs. Qs Large Cap | Dunham Appreciation vs. Ab Value Fund | Dunham Appreciation vs. Scharf Global Opportunity |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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