Correlation Between Balanced Fund and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Touchstone 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 Balanced Fund and Touchstone International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Touchstone International Equity, you can compare the effects of market volatilities on Balanced Fund and Touchstone 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 Balanced Fund with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Touchstone International.
Diversification Opportunities for Balanced Fund and Touchstone International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Balanced and Touchstone is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Balanced Fund i.e., Balanced Fund and Touchstone International go up and down completely randomly.
Pair Corralation between Balanced Fund and Touchstone International
Assuming the 90 days horizon Balanced Fund is expected to generate 1.09 times less return on investment than Touchstone International. But when comparing it to its historical volatility, Balanced Fund Retail is 1.8 times less risky than Touchstone International. It trades about 0.26 of its potential returns per unit of risk. Touchstone International Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,716 in Touchstone International Equity on June 2, 2025 and sell it today you would earn a total of 126.00 from holding Touchstone International Equity or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Touchstone International Equit
Performance |
| Timeline |
| Balanced Fund Retail |
| Touchstone International |
Balanced Fund and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Touchstone International
The main advantage of trading using opposite Balanced Fund and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Touchstone 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
| Touchstone International vs. Scout E Bond | Touchstone International vs. Multisector Bond Sma | Touchstone International vs. Gmo E Plus | Touchstone International vs. Pace Strategic Fixed |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |