Correlation Between Touchstone Sands and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands and Harding Loevner 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 Touchstone Sands and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Sands Capital and Harding Loevner Global, you can compare the effects of market volatilities on Touchstone Sands and Harding Loevner 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 Touchstone Sands with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Harding Loevner.
Diversification Opportunities for Touchstone Sands and Harding Loevner
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Touchstone and HARDING is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global and Touchstone Sands 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 Touchstone Sands Capital are associated (or correlated) with Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Global has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Harding Loevner go up and down completely randomly.
Pair Corralation between Touchstone Sands and Harding Loevner
Assuming the 90 days horizon Touchstone Sands Capital is expected to generate 1.66 times more return on investment than Harding Loevner. However, Touchstone Sands is 1.66 times more volatile than Harding Loevner Global. It trades about 0.1 of its potential returns per unit of risk. Harding Loevner Global is currently generating about 0.08 per unit of risk. If you would invest 1,386 in Touchstone Sands Capital on September 1, 2024 and sell it today you would earn a total of 244.00 from holding Touchstone Sands Capital or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Harding Loevner Global
Performance |
| Timeline |
| Touchstone Sands Capital |
| Harding Loevner Global |
Touchstone Sands and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Harding Loevner
The main advantage of trading using opposite Touchstone Sands and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Touchstone Sands vs. Large Cap Fund | Touchstone Sands vs. Nicholas Ii Inc | Touchstone Sands vs. Mid Cap Value | Touchstone Sands vs. Tcw Relative Value |
| Harding Loevner vs. Harding Loevner International | Harding Loevner vs. Harding Loevner Global | Harding Loevner vs. Harding Loevner International | Harding Loevner vs. Amg Timessquare International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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