Correlation Between Touchstone Ultra and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Touchstone Ultra and Aberdeen China 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 Ultra and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Ultra Short and Aberdeen China Oppty, you can compare the effects of market volatilities on Touchstone Ultra and Aberdeen China 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 Ultra with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Ultra and Aberdeen China.
Diversification Opportunities for Touchstone Ultra and Aberdeen China
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Aberdeen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Ultra Short and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty and Touchstone Ultra 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 Ultra Short are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Touchstone Ultra i.e., Touchstone Ultra and Aberdeen China go up and down completely randomly.
Pair Corralation between Touchstone Ultra and Aberdeen China
Assuming the 90 days horizon Touchstone Ultra Short is expected to generate 0.07 times more return on investment than Aberdeen China. However, Touchstone Ultra Short is 14.47 times less risky than Aberdeen China. It trades about 0.25 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about -0.03 per unit of risk. If you would invest 825.00 in Touchstone Ultra Short on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Touchstone Ultra Short or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Ultra Short vs. Aberdeen China Oppty
Performance |
| Timeline |
| Touchstone Ultra Short |
| Aberdeen China Oppty |
Touchstone Ultra and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Ultra and Aberdeen China
The main advantage of trading using opposite Touchstone Ultra and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Ultra position performs unexpectedly, Aberdeen China 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 Aberdeen China will offset losses from the drop in Aberdeen China's long position.| Touchstone Ultra vs. Issachar Fund Class | Touchstone Ultra vs. Scharf Global Opportunity | Touchstone Ultra vs. Mirova Global Green | Touchstone Ultra vs. Fm Investments Large |
| Aberdeen China vs. Maryland Short Term Tax Free | Aberdeen China vs. Calvert Short Duration | Aberdeen China vs. Touchstone Ultra Short | Aberdeen China 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |