Correlation Between Touchstone Sands and Mainstay
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands and Mainstay 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 Mainstay 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 Mainstay Sp 500, you can compare the effects of market volatilities on Touchstone Sands and Mainstay 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 Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Mainstay.
Diversification Opportunities for Touchstone Sands and Mainstay
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Touchstone and Mainstay is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Mainstay go up and down completely randomly.
Pair Corralation between Touchstone Sands and Mainstay
Assuming the 90 days horizon Touchstone Sands Capital is expected to under-perform the Mainstay. But the mutual fund apears to be less risky and, when comparing its historical volatility, Touchstone Sands Capital is 1.14 times less risky than Mainstay. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Mainstay Sp 500 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,468 in Mainstay Sp 500 on August 29, 2024 and sell it today you would earn a total of 225.00 from holding Mainstay Sp 500 or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Mainstay Sp 500
Performance |
| Timeline |
| Touchstone Sands Capital |
| Mainstay Sp 500 |
Touchstone Sands and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Mainstay
The main advantage of trading using opposite Touchstone Sands and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands position performs unexpectedly, Mainstay 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 Mainstay will offset losses from the drop in Mainstay's long position.| Touchstone Sands vs. Vanguard Emerging Markets | Touchstone Sands vs. Vanguard Emerging Markets | Touchstone Sands vs. HUMANA INC | Touchstone Sands vs. Aquagold International |
| Mainstay vs. Ab Bond Inflation | Mainstay vs. Touchstone Sands Capital | Mainstay vs. T Rowe Price | Mainstay vs. Artisan 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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