Correlation Between Firsthand Alternative and Touchstone Sands
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Touchstone Sands 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 Firsthand Alternative and Touchstone Sands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Touchstone Sands Capital, you can compare the effects of market volatilities on Firsthand Alternative and Touchstone Sands 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 Firsthand Alternative with a short position of Touchstone Sands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Touchstone Sands.
Diversification Opportunities for Firsthand Alternative and Touchstone Sands
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firsthand and Touchstone is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Touchstone Sands Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Sands Capital and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Touchstone Sands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Sands Capital has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Touchstone Sands go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Touchstone Sands
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Touchstone Sands. In addition to that, Firsthand Alternative is 1.22 times more volatile than Touchstone Sands Capital. It trades about 0.0 of its total potential returns per unit of risk. Touchstone Sands Capital is currently generating about 0.11 per unit of volatility. If you would invest 820.00 in Touchstone Sands Capital on September 14, 2024 and sell it today you would earn a total of 818.00 from holding Touchstone Sands Capital or generate 99.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Touchstone Sands Capital
Performance |
| Timeline |
| Firsthand Alternative |
| Touchstone Sands Capital |
Firsthand Alternative and Touchstone Sands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Touchstone Sands
The main advantage of trading using opposite Firsthand Alternative and Touchstone Sands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Touchstone Sands 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 Touchstone Sands will offset losses from the drop in Touchstone Sands' long position.| Firsthand Alternative vs. Berkshire Focus | Firsthand Alternative vs. Red Oak Technology | Firsthand Alternative vs. Jacob Internet Fund | Firsthand Alternative vs. Kinetics Internet Fund |
| Touchstone Sands vs. Firsthand Alternative Energy | Touchstone Sands vs. Invesco Energy Fund | Touchstone Sands vs. Fidelity Advisor Energy | Touchstone Sands vs. Jennison Natural Resources |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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