Correlation Between Touchstone International and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Touchstone International and Simt Multi 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 International and Simt Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone International Equity and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Touchstone International and Simt Multi 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 International with a short position of Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Simt Multi.
Diversification Opportunities for Touchstone International and Simt Multi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Simt is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Equit and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Touchstone International 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 International Equity are associated (or correlated) with Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Touchstone International i.e., Touchstone International and Simt Multi go up and down completely randomly.
Pair Corralation between Touchstone International and Simt Multi
Assuming the 90 days horizon Touchstone International is expected to generate 4.77 times less return on investment than Simt Multi. In addition to that, Touchstone International is 1.62 times more volatile than Simt Multi Asset Accumulation. It trades about 0.05 of its total potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.42 per unit of volatility. If you would invest 733.00 in Simt Multi Asset Accumulation on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Simt Multi Asset Accumulation or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Equit vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Touchstone International |
| Simt Multi Asset |
Touchstone International and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Simt Multi
The main advantage of trading using opposite Touchstone International and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi's long position.| Touchstone International vs. Guidemark Smallmid Cap | Touchstone International vs. Glg Intl Small | Touchstone International vs. Cardinal Small Cap | Touchstone International vs. Small Pany Growth |
| Simt Multi vs. Qs Global Equity | Simt Multi vs. Locorr Dynamic Equity | Simt Multi vs. Touchstone International Equity | Simt Multi vs. Huber Capital Equity |
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 CEOs Directory module to screen CEOs from public companies around the world.
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