Correlation Between Scharf Global and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Aqr Managed 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 Aqr Managed 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 Aqr Managed Futures, you can compare the effects of market volatilities on Scharf Global and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Aqr Managed.
Diversification Opportunities for Scharf Global and Aqr Managed
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Aqr is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Scharf Global i.e., Scharf Global and Aqr Managed go up and down completely randomly.
Pair Corralation between Scharf Global and Aqr Managed
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 0.69 times more return on investment than Aqr Managed. However, Scharf Global Opportunity is 1.44 times less risky than Aqr Managed. It trades about 0.09 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.02 per unit of risk. If you would invest 3,203 in Scharf Global Opportunity on September 14, 2024 and sell it today you would earn a total of 514.00 from holding Scharf Global Opportunity or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Aqr Managed Futures
Performance |
| Timeline |
| Scharf Global Opportunity |
| Aqr Managed Futures |
Scharf Global and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Aqr Managed
The main advantage of trading using opposite Scharf Global and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Scharf Global vs. Fidelity Advisor Diversified | Scharf Global vs. Tax Free Conservative Income | Scharf Global vs. Blackrock Conservative Prprdptfinstttnl | Scharf Global vs. Elfun Diversified Fund |
| Aqr Managed vs. Siit Global Managed | Aqr Managed vs. Alliancebernstein Global High | Aqr Managed vs. Scharf Global Opportunity | Aqr Managed vs. Kinetics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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