Correlation Between Hartford Capital and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Hartford Capital 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 Hartford Capital and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Capital and Scharf Fund Retail, you can compare the effects of market volatilities on Hartford Capital 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 Hartford Capital with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Capital and Scharf Fund.
Diversification Opportunities for Hartford Capital and Scharf Fund
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Scharf is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Capital and Scharf Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Fund Retail and Hartford Capital 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 The Hartford Capital 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 Retail has no effect on the direction of Hartford Capital i.e., Hartford Capital and Scharf Fund go up and down completely randomly.
Pair Corralation between Hartford Capital and Scharf Fund
Assuming the 90 days horizon The Hartford Capital is expected to under-perform the Scharf Fund. In addition to that, Hartford Capital is 3.76 times more volatile than Scharf Fund Retail. It trades about -0.2 of its total potential returns per unit of risk. Scharf Fund Retail is currently generating about -0.12 per unit of volatility. If you would invest 5,621 in Scharf Fund Retail on September 14, 2024 and sell it today you would lose (69.00) from holding Scharf Fund Retail or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Capital vs. Scharf Fund Retail
Performance |
| Timeline |
| Hartford Capital |
| Scharf Fund Retail |
Hartford Capital and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Capital and Scharf Fund
The main advantage of trading using opposite Hartford Capital and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Capital 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.| Hartford Capital vs. Scharf Fund Retail | Hartford Capital vs. Dodge International Stock | Hartford Capital vs. Rbc Global Equity | Hartford Capital vs. Gmo Global Equity |
| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. American Funds 2060 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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