Correlation Between Strategic Asset and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Strategic Asset 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 Strategic Asset and Touchstone Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Touchstone Large Cap, you can compare the effects of market volatilities on Strategic Asset 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 Strategic Asset with a short position of Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Touchstone Large.
Diversification Opportunities for Strategic Asset and Touchstone Large
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strategic and Touchstone is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management 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 Strategic Asset 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 Strategic Asset Management 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 Strategic Asset i.e., Strategic Asset and Touchstone Large go up and down completely randomly.
Pair Corralation between Strategic Asset and Touchstone Large
Assuming the 90 days horizon Strategic Asset Management is expected to generate 1.05 times more return on investment than Touchstone Large. However, Strategic Asset is 1.05 times more volatile than Touchstone Large Cap. It trades about 0.1 of its potential returns per unit of risk. Touchstone Large Cap is currently generating about 0.09 per unit of risk. If you would invest 1,633 in Strategic Asset Management on September 12, 2024 and sell it today you would earn a total of 714.00 from holding Strategic Asset Management or generate 43.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.18% |
| Values | Daily Returns |
Strategic Asset Management vs. Touchstone Large Cap
Performance |
| Timeline |
| Strategic Asset Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Touchstone Large Cap |
Strategic Asset and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Touchstone Large
The main advantage of trading using opposite Strategic Asset and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset 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.| Strategic Asset vs. Intal High Relative | Strategic Asset vs. Ppm High Yield | Strategic Asset vs. Calvert High Yield | Strategic Asset vs. Artisan High Income |
| Touchstone Large vs. Jhancock Disciplined Value | Touchstone Large vs. Fidelity Series 1000 | Touchstone Large vs. Dana Large Cap | Touchstone Large vs. Americafirst Large Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |