Correlation Between Touchstone Sands and Sentinel International
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands and Sentinel International 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 Sands and Sentinel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Sands Capital and Sentinel International Equity, you can compare the effects of market volatilities on Touchstone Sands and Sentinel International 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 Sands with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Sentinel International.
Diversification Opportunities for Touchstone Sands and Sentinel International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Sentinel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and Touchstone Sands 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 Sands Capital are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Sentinel International go up and down completely randomly.
Pair Corralation between Touchstone Sands and Sentinel International
Assuming the 90 days horizon Touchstone Sands Capital is expected to generate 1.49 times more return on investment than Sentinel International. However, Touchstone Sands is 1.49 times more volatile than Sentinel International Equity. It trades about 0.19 of its potential returns per unit of risk. Sentinel International Equity is currently generating about 0.21 per unit of risk. If you would invest 2,002 in Touchstone Sands Capital on April 7, 2025 and sell it today you would earn a total of 78.00 from holding Touchstone Sands Capital or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Sentinel International Equity
Performance |
| Timeline |
| Touchstone Sands Capital |
| Sentinel International |
Touchstone Sands and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Sentinel International
The main advantage of trading using opposite Touchstone Sands and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands position performs unexpectedly, Sentinel International 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 Sentinel International will offset losses from the drop in Sentinel International's long position.| Touchstone Sands vs. Western Asset Diversified | Touchstone Sands vs. Principal Lifetime Hybrid | Touchstone Sands vs. Aqr Diversified Arbitrage | Touchstone Sands vs. Tiaa Cref Small Cap Blend |
| Sentinel International vs. Ep Emerging Markets | Sentinel International vs. Franklin Emerging Market | Sentinel International vs. The Hartford Emerging | Sentinel International vs. Siit Emerging Markets |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |