Correlation Between Scharf Global and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Aim Investment 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 Aim Investment 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 Aim Investment Secs, you can compare the effects of market volatilities on Scharf Global and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Aim Investment.
Diversification Opportunities for Scharf Global and Aim Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Aim is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Scharf Global i.e., Scharf Global and Aim Investment go up and down completely randomly.
Pair Corralation between Scharf Global and Aim Investment
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 4.93 times more return on investment than Aim Investment. However, Scharf Global is 4.93 times more volatile than Aim Investment Secs. It trades about 0.09 of its potential returns per unit of risk. Aim Investment Secs is currently generating about 0.13 per unit of risk. If you would invest 3,113 in Scharf Global Opportunity on September 4, 2024 and sell it today you would earn a total of 701.00 from holding Scharf Global Opportunity or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Aim Investment Secs
Performance |
| Timeline |
| Scharf Global Opportunity |
| Aim Investment Secs |
Scharf Global and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Aim Investment
The main advantage of trading using opposite Scharf Global and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Scharf Global vs. The Hartford Emerging | Scharf Global vs. Locorr Market Trend | Scharf Global vs. Ep Emerging Markets | Scharf Global vs. Morgan Stanley Emerging |
| Aim Investment vs. Scharf Global Opportunity | Aim Investment vs. Mirova Global Green | Aim Investment vs. T Rowe Price | Aim Investment vs. Volumetric Fund Volumetric |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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