Correlation Between Scharf Fund and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Teton Westwood 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 Teton Westwood 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 Teton Westwood Equity, you can compare the effects of market volatilities on Scharf Fund and Teton Westwood 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 Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Teton Westwood.
Diversification Opportunities for Scharf Fund and Teton Westwood
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scharf and Teton is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood 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 Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of Scharf Fund i.e., Scharf Fund and Teton Westwood go up and down completely randomly.
Pair Corralation between Scharf Fund and Teton Westwood
Assuming the 90 days horizon Scharf Fund Retail is expected to generate 0.33 times more return on investment than Teton Westwood. However, Scharf Fund Retail is 2.99 times less risky than Teton Westwood. It trades about 0.43 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about -0.06 per unit of risk. If you would invest 5,453 in Scharf Fund Retail on September 4, 2024 and sell it today you would earn a total of 310.00 from holding Scharf Fund Retail or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Scharf Fund Retail vs. Teton Westwood Equity
Performance |
| Timeline |
| Scharf Fund Retail |
| Teton Westwood Equity |
Scharf Fund and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Teton Westwood
The main advantage of trading using opposite Scharf Fund and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| Scharf Fund vs. Dana Large Cap | Scharf Fund vs. Qs Large Cap | Scharf Fund vs. Avantis Large Cap | Scharf Fund vs. Fidelity Series 1000 |
| Teton Westwood vs. Balanced Fund Retail | Teton Westwood vs. Multimedia Portfolio Multimedia | Teton Westwood vs. Scharf Fund Retail | Teton Westwood vs. Us Strategic Equity |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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