Correlation Between Scharf Fund and Nuveen Symphony

Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Nuveen Symphony 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 Fund and Nuveen Symphony into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Scharf Fund Retail and Nuveen Symphony Low, you can compare the effects of market volatilities on Scharf Fund and Nuveen Symphony 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 Fund with a short position of Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Nuveen Symphony.

Diversification Opportunities for Scharf Fund and Nuveen Symphony

0.0

Correlation Coefficient

Scharf Fund  Nuveen Symphony

Pay attention - limited upside

The 3 months correlation between Scharf and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Nuveen Symphony Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Low and Scharf Fund 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 Fund Retail are associated (or correlated) with Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Low has no effect on the direction of Scharf Fund i.e., Scharf Fund and Nuveen Symphony go up and down completely randomly.

Pair Corralation between Scharf Fund and Nuveen Symphony

If you would invest  4,713  in Scharf Fund Retail on September 4, 2024 and sell it today you would earn a total of  1,050  from holding Scharf Fund Retail or generate 22.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Scharf Fund Retail  vs.  Nuveen Symphony Low

Scharf Fund Retail

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Scharf Fund Retail are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Scharf Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Symphony Low

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Symphony Low has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Nuveen Symphony is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Scharf Fund and Nuveen Symphony

The main advantage of trading using opposite Scharf Fund and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Nuveen Symphony 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 Nuveen Symphony will offset losses from the drop in Nuveen Symphony's long position.

The idea behind Scharf Fund Retail and Nuveen Symphony Low 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.