Correlation Between Scharf Fund and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Massmutual Select 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 Massmutual Select 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 Massmutual Select Mid Cap, you can compare the effects of market volatilities on Scharf Fund and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Massmutual Select.
Diversification Opportunities for Scharf Fund and Massmutual Select
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Scharf and Massmutual is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Mid has no effect on the direction of Scharf Fund i.e., Scharf Fund and Massmutual Select go up and down completely randomly.
Pair Corralation between Scharf Fund and Massmutual Select
Assuming the 90 days horizon Scharf Fund is expected to generate 1.21 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Scharf Fund Retail is 1.13 times less risky than Massmutual Select. It trades about 0.05 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,077 in Massmutual Select Mid Cap on September 14, 2024 and sell it today you would earn a total of 254.00 from holding Massmutual Select Mid Cap or generate 23.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Scharf Fund Retail vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Scharf Fund Retail |
| Massmutual Select Mid |
Scharf Fund and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Massmutual Select
The main advantage of trading using opposite Scharf Fund and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. American Funds 2060 |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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