Correlation Between Touchstone Premium and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Touchstone Premium and Astor Long/short 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 Premium and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Premium Yield and Astor Longshort Fund, you can compare the effects of market volatilities on Touchstone Premium and Astor Long/short 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 Premium with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Premium and Astor Long/short.
Diversification Opportunities for Touchstone Premium and Astor Long/short
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Touchstone and Astor is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Premium Yield and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Touchstone Premium 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 Premium Yield are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Touchstone Premium i.e., Touchstone Premium and Astor Long/short go up and down completely randomly.
Pair Corralation between Touchstone Premium and Astor Long/short
Assuming the 90 days horizon Touchstone Premium Yield is expected to generate 2.7 times more return on investment than Astor Long/short. However, Touchstone Premium is 2.7 times more volatile than Astor Longshort Fund. It trades about 0.06 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.1 per unit of risk. If you would invest 693.00 in Touchstone Premium Yield on September 3, 2024 and sell it today you would earn a total of 201.00 from holding Touchstone Premium Yield or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Premium Yield vs. Astor Longshort Fund
Performance |
| Timeline |
| Touchstone Premium Yield |
| Astor Long/short |
Touchstone Premium and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Premium and Astor Long/short
The main advantage of trading using opposite Touchstone Premium and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Premium position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Touchstone Premium vs. Dodge Cox Emerging | Touchstone Premium vs. Jpmorgan Emerging Markets | Touchstone Premium vs. Templeton Emerging Markets | Touchstone Premium vs. Legg Mason Partners |
| Astor Long/short vs. Touchstone Premium Yield | Astor Long/short vs. Ab Bond Inflation | Astor Long/short vs. Ab Impact Municipal | Astor Long/short vs. Limited Term Tax |
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 Correlations module to find global opportunities by holding instruments from different markets.
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