Correlation Between Scharf Global and Keeley Alternative
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Keeley Alternative 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 Keeley Alternative 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 Keeley Alternative Value, you can compare the effects of market volatilities on Scharf Global and Keeley Alternative 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 Keeley Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Keeley Alternative.
Diversification Opportunities for Scharf Global and Keeley Alternative
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scharf and Keeley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Keeley Alternative Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Alternative Value 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 Keeley Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Alternative Value has no effect on the direction of Scharf Global i.e., Scharf Global and Keeley Alternative go up and down completely randomly.
Pair Corralation between Scharf Global and Keeley Alternative
If you would invest 3,605 in Scharf Global Opportunity on November 22, 2024 and sell it today you would earn a total of 150.00 from holding Scharf Global Opportunity or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Keeley Alternative Value
Performance |
| Timeline |
| Scharf Global Opportunity |
| Keeley Alternative Value |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Scharf Global and Keeley Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Keeley Alternative
The main advantage of trading using opposite Scharf Global and Keeley Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Keeley Alternative 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 Keeley Alternative will offset losses from the drop in Keeley Alternative's long position.The idea behind Scharf Global Opportunity and Keeley Alternative Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Keeley Alternative vs. Hennessy Technology Fund | Keeley Alternative vs. Science Technology Fund | Keeley Alternative vs. Icon Information Technology | Keeley Alternative vs. Vanguard Information Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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