Correlation Between Scharf Global and Mfs International
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Mfs International 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 Mfs International 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 Mfs International New, you can compare the effects of market volatilities on Scharf Global and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Mfs International.
Diversification Opportunities for Scharf Global and Mfs International
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scharf and Mfs is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of Scharf Global i.e., Scharf Global and Mfs International go up and down completely randomly.
Pair Corralation between Scharf Global and Mfs International
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 0.8 times more return on investment than Mfs International. However, Scharf Global Opportunity is 1.25 times less risky than Mfs International. It trades about 0.06 of its potential returns per unit of risk. Mfs International New is currently generating about -0.01 per unit of risk. If you would invest 3,272 in Scharf Global Opportunity on September 12, 2024 and sell it today you would earn a total of 448.00 from holding Scharf Global Opportunity or generate 13.69% 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. Mfs International New
Performance |
| Timeline |
| Scharf Global Opportunity |
| Mfs International New |
Scharf Global and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Mfs International
The main advantage of trading using opposite Scharf Global and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International's long position.| Scharf Global vs. Rbc Short Duration | Scharf Global vs. Delaware Investments Ultrashort | Scharf Global vs. Blackrock Short Term Inflat Protected | Scharf Global vs. Touchstone Ultra Short |
| Mfs International vs. 361 Global Longshort | Mfs International vs. Scharf Global Opportunity | Mfs International vs. Siit Global Managed | Mfs International vs. Commonwealth Global Fund |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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