Correlation Between Touchstone Large and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Touchstone Large and Strategic Asset 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 Large and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Large Cap and Strategic Asset Management, you can compare the effects of market volatilities on Touchstone Large and Strategic Asset 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 Large with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Large and Strategic Asset.
Diversification Opportunities for Touchstone Large and Strategic Asset
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Strategic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Large Cap and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and Touchstone Large 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 Large Cap are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Touchstone Large i.e., Touchstone Large and Strategic Asset go up and down completely randomly.
Pair Corralation between Touchstone Large and Strategic Asset
Assuming the 90 days horizon Touchstone Large Cap is expected to generate 1.82 times more return on investment than Strategic Asset. However, Touchstone Large is 1.82 times more volatile than Strategic Asset Management. It trades about 0.15 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.15 per unit of risk. If you would invest 1,788 in Touchstone Large Cap on September 3, 2024 and sell it today you would earn a total of 279.00 from holding Touchstone Large Cap or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Large Cap vs. Strategic Asset Management
Performance |
| Timeline |
| Touchstone Large Cap |
| Strategic Asset Mana |
Touchstone Large and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Large and Strategic Asset
The main advantage of trading using opposite Touchstone Large and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Large position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Touchstone Large vs. Small Cap Stock | Touchstone Large vs. Omni Small Cap Value | Touchstone Large vs. Volumetric Fund Volumetric | Touchstone Large vs. Issachar Fund Class |
| Strategic Asset vs. Jhancock Short Duration | Strategic Asset vs. Angel Oak Ultrashort | Strategic Asset vs. Quantitative Longshort Equity | Strategic Asset vs. Calvert Short Duration |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |