Correlation Between Greenspring Fund and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Greenspring 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 Greenspring 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 Greenspring Fund Retail and Touchstone International Equity, you can compare the effects of market volatilities on Greenspring 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 Greenspring Fund with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Touchstone International.
Diversification Opportunities for Greenspring Fund and Touchstone International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greenspring and Touchstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring 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 Greenspring 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 Greenspring 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 Greenspring Fund i.e., Greenspring Fund and Touchstone International go up and down completely randomly.
Pair Corralation between Greenspring Fund and Touchstone International
Assuming the 90 days horizon Greenspring Fund Retail is expected to under-perform the Touchstone International. In addition to that, Greenspring Fund is 1.44 times more volatile than Touchstone International Equity. It trades about -0.02 of its total potential returns per unit of risk. Touchstone International Equity is currently generating about 0.36 per unit of volatility. If you would invest 1,667 in Touchstone International Equity on March 19, 2025 and sell it today you would earn a total of 69.00 from holding Touchstone International Equity or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Touchstone International Equit
Performance |
| Timeline |
| Greenspring Fund Retail |
| Touchstone International |
Greenspring Fund and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Touchstone International
The main advantage of trading using opposite Greenspring Fund and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring 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.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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