Correlation Between IShares Currency and Touchstone Dynamic
Can any of the company-specific risk be diversified away by investing in both IShares Currency and Touchstone Dynamic 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 IShares Currency and Touchstone Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Currency Hedged and Touchstone Dynamic International, you can compare the effects of market volatilities on IShares Currency and Touchstone Dynamic 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 IShares Currency with a short position of Touchstone Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Currency and Touchstone Dynamic.
Diversification Opportunities for IShares Currency and Touchstone Dynamic
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Touchstone is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares Currency Hedged and Touchstone Dynamic Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Dynamic and IShares Currency 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 iShares Currency Hedged are associated (or correlated) with Touchstone Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Dynamic has no effect on the direction of IShares Currency i.e., IShares Currency and Touchstone Dynamic go up and down completely randomly.
Pair Corralation between IShares Currency and Touchstone Dynamic
Given the investment horizon of 90 days IShares Currency is expected to generate 1.71 times less return on investment than Touchstone Dynamic. In addition to that, IShares Currency is 1.46 times more volatile than Touchstone Dynamic International. It trades about 0.06 of its total potential returns per unit of risk. Touchstone Dynamic International is currently generating about 0.15 per unit of volatility. If you would invest 2,765 in Touchstone Dynamic International on October 24, 2024 and sell it today you would earn a total of 54.00 from holding Touchstone Dynamic International or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Currency Hedged vs. Touchstone Dynamic Internation
Performance |
| Timeline |
| iShares Currency Hedged |
| Touchstone Dynamic |
IShares Currency and Touchstone Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Currency and Touchstone Dynamic
The main advantage of trading using opposite IShares Currency and Touchstone Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Currency position performs unexpectedly, Touchstone Dynamic 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 Dynamic will offset losses from the drop in Touchstone Dynamic's long position.| IShares Currency vs. iShares Currency Hedged | IShares Currency vs. Xtrackers MSCI Japan | IShares Currency vs. iShares Currency Hedged | IShares Currency vs. iShares Currency Hedged |
| Touchstone Dynamic vs. Davis Select International | Touchstone Dynamic vs. Tidal ETF Trust | Touchstone Dynamic vs. Principal Value ETF | Touchstone Dynamic vs. WisdomTree Emerging Markets |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |