Correlation Between Scharf Balanced and Catalyst/smh Total
Can any of the company-specific risk be diversified away by investing in both Scharf Balanced and Catalyst/smh Total 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 Balanced and Catalyst/smh Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Balanced Opportunity and Catalystsmh Total Return, you can compare the effects of market volatilities on Scharf Balanced and Catalyst/smh Total 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 Balanced with a short position of Catalyst/smh Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Balanced and Catalyst/smh Total.
Diversification Opportunities for Scharf Balanced and Catalyst/smh Total
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scharf and Catalyst/smh is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Balanced Opportunity and Catalystsmh Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh Total Return and Scharf Balanced 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 Balanced Opportunity are associated (or correlated) with Catalyst/smh Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh Total Return has no effect on the direction of Scharf Balanced i.e., Scharf Balanced and Catalyst/smh Total go up and down completely randomly.
Pair Corralation between Scharf Balanced and Catalyst/smh Total
Assuming the 90 days horizon Scharf Balanced Opportunity is expected to generate 0.58 times more return on investment than Catalyst/smh Total. However, Scharf Balanced Opportunity is 1.74 times less risky than Catalyst/smh Total. It trades about 0.04 of its potential returns per unit of risk. Catalystsmh Total Return is currently generating about 0.0 per unit of risk. If you would invest 3,716 in Scharf Balanced Opportunity on August 20, 2025 and sell it today you would earn a total of 47.00 from holding Scharf Balanced Opportunity or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Balanced Opportunity vs. Catalystsmh Total Return
Performance |
| Timeline |
| Scharf Balanced Oppo |
| Catalystsmh Total Return |
Scharf Balanced and Catalyst/smh Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Balanced and Catalyst/smh Total
The main advantage of trading using opposite Scharf Balanced and Catalyst/smh Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Balanced position performs unexpectedly, Catalyst/smh Total 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 Catalyst/smh Total will offset losses from the drop in Catalyst/smh Total's long position.| Scharf Balanced vs. Amg Managers Emerging | Scharf Balanced vs. Amg Fq Long Short | Scharf Balanced vs. Hennessy Total Return | Scharf Balanced vs. Nuveen Large Cap |
| Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalyst Mlp Infrastructure |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |