Correlation Between Touchstone Small and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Touchstone Small and Cohen Steers 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 Small and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Small Cap and Cohen Steers Low, you can compare the effects of market volatilities on Touchstone Small and Cohen Steers 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 Small with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Small and Cohen Steers.
Diversification Opportunities for Touchstone Small and Cohen Steers
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Touchstone and Cohen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Cap and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Touchstone Small 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 Small Cap are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Low has no effect on the direction of Touchstone Small i.e., Touchstone Small and Cohen Steers go up and down completely randomly.
Pair Corralation between Touchstone Small and Cohen Steers
Assuming the 90 days horizon Touchstone Small Cap is expected to generate 5.36 times more return on investment than Cohen Steers. However, Touchstone Small is 5.36 times more volatile than Cohen Steers Low. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.12 per unit of risk. If you would invest 3,245 in Touchstone Small Cap on September 3, 2024 and sell it today you would earn a total of 932.00 from holding Touchstone Small Cap or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Small Cap vs. Cohen Steers Low
Performance |
| Timeline |
| Touchstone Small Cap |
| Cohen Steers Low |
Touchstone Small and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Small and Cohen Steers
The main advantage of trading using opposite Touchstone Small and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Small position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Touchstone Small vs. Vanguard Small Cap Value | Touchstone Small vs. Vanguard Small Cap Value | Touchstone Small vs. Us Small Cap | Touchstone Small vs. Us Targeted Value |
| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |