Correlation Between Scharf Fund and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Eaton Vance 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 Eaton Vance 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 Eaton Vance Government, you can compare the effects of market volatilities on Scharf Fund and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Eaton Vance.
Diversification Opportunities for Scharf Fund and Eaton Vance
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scharf and Eaton is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Eaton Vance Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Government 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Government has no effect on the direction of Scharf Fund i.e., Scharf Fund and Eaton Vance go up and down completely randomly.
Pair Corralation between Scharf Fund and Eaton Vance
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 2.41 times more return on investment than Eaton Vance. However, Scharf Fund is 2.41 times more volatile than Eaton Vance Government. It trades about 0.24 of its potential returns per unit of risk. Eaton Vance Government is currently generating about -0.12 per unit of risk. If you would invest 5,518 in Scharf Fund Retail on August 27, 2024 and sell it today you would earn a total of 200.00 from holding Scharf Fund Retail or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Eaton Vance Government
Performance |
| Timeline |
| Scharf Fund Retail |
| Eaton Vance Government |
Scharf Fund and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Eaton Vance
The main advantage of trading using opposite Scharf Fund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Scharf Fund vs. Small Cap Equity | Scharf Fund vs. Touchstone International Equity | Scharf Fund vs. Dodge International Stock | Scharf Fund vs. Ultra Short Term Fixed |
| Eaton Vance vs. Scharf Fund Retail | Eaton Vance vs. Ab Select Equity | Eaton Vance vs. Artisan Select Equity | Eaton Vance vs. Dodge International Stock |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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