Correlation Between Scharf Fund and Hartford Equity
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Hartford Equity 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 Hartford Equity 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 Hartford Equity 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 Hartford Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Hartford Equity.
Diversification Opportunities for Scharf Fund and Hartford Equity
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scharf and Hartford is 0.82. 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 Hartford Equity. 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 Hartford Equity go up and down completely randomly.
Pair Corralation between Scharf Fund and Hartford Equity
Assuming the 90 days horizon Scharf Fund is expected to generate 22.31 times less return on investment than Hartford Equity. But when comparing it to its historical volatility, Scharf Fund Retail is 15.8 times less risky than Hartford Equity. It trades about 0.16 of its potential returns per unit of risk. The Hartford Equity is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,012 in The Hartford Equity on November 30, 2024 and sell it today you would earn a total of 110.00 from holding The Hartford Equity or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.56% |
| Values | Daily Returns |
Scharf Fund Retail vs. The Hartford Equity
Performance |
| Timeline |
| Scharf Fund Retail |
| Hartford Equity |
Scharf Fund and Hartford Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Hartford Equity
The main advantage of trading using opposite Scharf Fund and Hartford Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Hartford Equity 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 Hartford Equity will offset losses from the drop in Hartford Equity's long position.| Scharf Fund vs. Pimco Energy Tactical | Scharf Fund vs. Salient Mlp Energy | Scharf Fund vs. Alpsalerian Energy Infrastructure | Scharf Fund vs. Thrivent Natural Resources |
| Hartford Equity vs. The Hartford Equity | Hartford Equity vs. T Rowe Price | Hartford Equity vs. Janus Growth And | Hartford Equity vs. The Hartford International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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