Correlation Between Scharf Fund and The Hartford
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and The Hartford 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 The Hartford 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 The Hartford Equity, you can compare the effects of market volatilities on Scharf Fund and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and The Hartford.
Diversification Opportunities for Scharf Fund and The Hartford
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Scharf and The is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Equity has no effect on the direction of Scharf Fund i.e., Scharf Fund and The Hartford go up and down completely randomly.
Pair Corralation between Scharf Fund and The Hartford
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 0.96 times more return on investment than The Hartford. However, Scharf Fund Retail is 1.04 times less risky than The Hartford. It trades about 0.15 of its potential returns per unit of risk. The Hartford Equity is currently generating about 0.14 per unit of risk. If you would invest 5,105 in Scharf Fund Retail on August 28, 2024 and sell it today you would earn a total of 613.00 from holding Scharf Fund Retail or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. The Hartford Equity
Performance |
| Timeline |
| Scharf Fund Retail |
| Hartford Equity |
Scharf Fund and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and The Hartford
The main advantage of trading using opposite Scharf Fund and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Eventide Gilead Fund |
| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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