Correlation Between Scharf Global and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Scharf Global and Calvert Emerging 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 Calvert Emerging 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 Calvert Emerging Markets, you can compare the effects of market volatilities on Scharf Global and Calvert Emerging 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and Calvert Emerging.
Diversification Opportunities for Scharf Global and Calvert Emerging
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scharf and Calvert is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Scharf Global i.e., Scharf Global and Calvert Emerging go up and down completely randomly.
Pair Corralation between Scharf Global and Calvert Emerging
Assuming the 90 days horizon Scharf Global is expected to generate 2.01 times less return on investment than Calvert Emerging. But when comparing it to its historical volatility, Scharf Global Opportunity is 1.37 times less risky than Calvert Emerging. It trades about 0.23 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,694 in Calvert Emerging Markets on April 16, 2025 and sell it today you would earn a total of 322.00 from holding Calvert Emerging Markets or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Scharf Global Opportunity vs. Calvert Emerging Markets
Performance |
| Timeline |
| Scharf Global Opportunity |
| Calvert Emerging Markets |
Scharf Global and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and Calvert Emerging
The main advantage of trading using opposite Scharf Global and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global position performs unexpectedly, Calvert Emerging 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 Calvert Emerging will offset losses from the drop in Calvert Emerging's long position.| Scharf Global vs. Federated Government Income | Scharf Global vs. Elfun Government Money | Scharf Global vs. Aig Government Money | Scharf Global vs. Dunham Porategovernment Bond |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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