Correlation Between Cref Inflation and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Scharf Fund 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 Cref Inflation and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Scharf Fund Institutional, you can compare the effects of market volatilities on Cref Inflation and Scharf Fund 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 Cref Inflation with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Scharf Fund.
Diversification Opportunities for Cref Inflation and Scharf Fund
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cref and Scharf is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Scharf Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Fund Institutional and Cref Inflation 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 Cref Inflation Linked Bond are associated (or correlated) with Scharf Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Fund Institutional has no effect on the direction of Cref Inflation i.e., Cref Inflation and Scharf Fund go up and down completely randomly.
Pair Corralation between Cref Inflation and Scharf Fund
Assuming the 90 days trading horizon Cref Inflation is expected to generate 2.4 times less return on investment than Scharf Fund. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 4.56 times less risky than Scharf Fund. It trades about 0.08 of its potential returns per unit of risk. Scharf Fund Institutional is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,329 in Scharf Fund Institutional on March 16, 2025 and sell it today you would earn a total of 156.00 from holding Scharf Fund Institutional or generate 2.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cref Inflation Linked Bond vs. Scharf Fund Institutional
Performance |
Timeline |
Cref Inflation Linked |
Scharf Fund Institutional |
Cref Inflation and Scharf Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cref Inflation and Scharf Fund
The main advantage of trading using opposite Cref Inflation and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Scharf Fund 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 Scharf Fund will offset losses from the drop in Scharf Fund's long position.Cref Inflation vs. Allianzgi Diversified Income | Cref Inflation vs. Elfun Diversified Fund | Cref Inflation vs. Delaware Limited Term Diversified | Cref Inflation vs. Tax Free Conservative Income |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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