Correlation Between Glg Intl and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Touchstone International 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 Glg Intl and Touchstone International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Touchstone International Equity, you can compare the effects of market volatilities on Glg Intl and Touchstone International 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 Glg Intl with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Touchstone International.
Diversification Opportunities for Glg Intl and Touchstone International
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glg and TOUCHSTONE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Glg Intl 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 Glg Intl Small are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Glg Intl i.e., Glg Intl and Touchstone International go up and down completely randomly.
Pair Corralation between Glg Intl and Touchstone International
Assuming the 90 days horizon Glg Intl Small is expected to generate 1.19 times more return on investment than Touchstone International. However, Glg Intl is 1.19 times more volatile than Touchstone International Equity. It trades about 0.04 of its potential returns per unit of risk. Touchstone International Equity is currently generating about 0.01 per unit of risk. If you would invest 7,961 in Glg Intl Small on December 4, 2024 and sell it today you would earn a total of 621.00 from holding Glg Intl Small or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Touchstone International Equit
Performance |
| Timeline |
| Glg Intl Small |
| Touchstone International |
Glg Intl and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Touchstone International
The main advantage of trading using opposite Glg Intl and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Touchstone International 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 International will offset losses from the drop in Touchstone International's long position.| Glg Intl vs. Jpmorgan Emerging Markets | Glg Intl vs. Artisan Developing World | Glg Intl vs. Doubleline Emerging Markets | Glg Intl vs. Pnc Emerging Markets |
| Touchstone International vs. Tiaa Cref Funds | Touchstone International vs. Jpmorgan Trust I | Touchstone International vs. John Hancock Money | Touchstone International vs. Pace Select Advisors |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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