Correlation Between Cullen Emerging and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Cullen Emerging and Touchstone Large 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 Cullen Emerging and Touchstone Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Emerging Markets and Touchstone Large Cap, you can compare the effects of market volatilities on Cullen Emerging and Touchstone Large 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 Cullen Emerging with a short position of Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Emerging and Touchstone Large.
Diversification Opportunities for Cullen Emerging and Touchstone Large
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullen and Touchstone is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Emerging Markets and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap and Cullen Emerging 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 Cullen Emerging Markets are associated (or correlated) with Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Cullen Emerging i.e., Cullen Emerging and Touchstone Large go up and down completely randomly.
Pair Corralation between Cullen Emerging and Touchstone Large
Assuming the 90 days horizon Cullen Emerging is expected to generate 4.77 times less return on investment than Touchstone Large. In addition to that, Cullen Emerging is 1.2 times more volatile than Touchstone Large Cap. It trades about 0.02 of its total potential returns per unit of risk. Touchstone Large Cap is currently generating about 0.1 per unit of volatility. If you would invest 1,810 in Touchstone Large Cap on September 13, 2024 and sell it today you would earn a total of 157.00 from holding Touchstone Large Cap or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cullen Emerging Markets vs. Touchstone Large Cap
Performance |
| Timeline |
| Cullen Emerging Markets |
| Touchstone Large Cap |
Cullen Emerging and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Emerging and Touchstone Large
The main advantage of trading using opposite Cullen Emerging and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Emerging position performs unexpectedly, Touchstone Large 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 Large will offset losses from the drop in Touchstone Large's long position.| Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Value Fund |
| Touchstone Large vs. Virtus Convertible | Touchstone Large vs. Gabelli Convertible And | Touchstone Large vs. Calamos Dynamic Convertible | Touchstone Large vs. Putnam Convertible Incm Gwth |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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