Correlation Between Scharf Global and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Scharf Global and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Eagle Growth.
Diversification Opportunities for Scharf Global and Eagle Growth
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Eagle is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Scharf Global i.e., Scharf Global and Eagle Growth go up and down completely randomly.
Pair Corralation between Scharf Global and Eagle Growth
If you would invest 3,672 in Scharf Global Opportunity on August 28, 2024 and sell it today you would earn a total of 133.00 from holding Scharf Global Opportunity or generate 3.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Scharf Global Opportunity vs. Eagle Growth Income
Performance |
Timeline |
Scharf Global Opportunity |
Eagle Growth Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scharf Global and Eagle Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scharf Global and Eagle Growth
The main advantage of trading using opposite Scharf Global and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Scharf Fund Retail | Scharf Global vs. Scharf Balanced Opportunity | Scharf Global vs. Northern Quality Esg |
Eagle Growth vs. Rbb Fund Trust | Eagle Growth vs. Nuveen Global Real | Eagle Growth vs. Dreyfusstandish Global Fixed | Eagle Growth 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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