Correlation Between Martin Currie and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Touchstone Small 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 Martin Currie and Touchstone Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Emerging and Touchstone Small Cap, you can compare the effects of market volatilities on Martin Currie and Touchstone Small 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 Martin Currie with a short position of Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Touchstone Small.
Diversification Opportunities for Martin Currie and Touchstone Small
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Martin and Touchstone is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Touchstone Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Small Cap and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of Martin Currie i.e., Martin Currie and Touchstone Small go up and down completely randomly.
Pair Corralation between Martin Currie and Touchstone Small
Assuming the 90 days horizon Martin Currie Emerging is expected to generate 0.97 times more return on investment than Touchstone Small. However, Martin Currie Emerging is 1.03 times less risky than Touchstone Small. It trades about 0.16 of its potential returns per unit of risk. Touchstone Small Cap is currently generating about 0.07 per unit of risk. If you would invest 1,448 in Martin Currie Emerging on September 9, 2025 and sell it today you would earn a total of 154.00 from holding Martin Currie Emerging or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Emerging vs. Touchstone Small Cap
Performance |
| Timeline |
| Martin Currie Emerging |
| Touchstone Small Cap |
Martin Currie and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Touchstone Small
The main advantage of trading using opposite Martin Currie and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Touchstone Small 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 Small will offset losses from the drop in Touchstone Small's long position.| Martin Currie vs. Deutsche Real Estate | Martin Currie vs. Tiaa Cref Real Estate | Martin Currie vs. Tiaa Cref Real Estate | Martin Currie vs. Forum Real Estate |
| Touchstone Small vs. Saat Defensive Strategy | Touchstone Small vs. Seafarer Overseas Growth | Touchstone Small vs. Fidelity Series Emerging | Touchstone Small vs. Blackrock 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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