Correlation Between Sentinel International and Touchstone Focused
Can any of the company-specific risk be diversified away by investing in both Sentinel International and Touchstone Focused 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 Sentinel International and Touchstone Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentinel International Equity and Touchstone Focused Fund, you can compare the effects of market volatilities on Sentinel International and Touchstone Focused 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 Sentinel International with a short position of Touchstone Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel International and Touchstone Focused.
Diversification Opportunities for Sentinel International and Touchstone Focused
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sentinel and Touchstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel International Equity and Touchstone Focused Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Focused and Sentinel International 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 Sentinel International Equity are associated (or correlated) with Touchstone Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Focused has no effect on the direction of Sentinel International i.e., Sentinel International and Touchstone Focused go up and down completely randomly.
Pair Corralation between Sentinel International and Touchstone Focused
Assuming the 90 days horizon Sentinel International is expected to generate 1.06 times less return on investment than Touchstone Focused. But when comparing it to its historical volatility, Sentinel International Equity is 1.11 times less risky than Touchstone Focused. It trades about 0.07 of its potential returns per unit of risk. Touchstone Focused Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,917 in Touchstone Focused Fund on March 30, 2025 and sell it today you would earn a total of 1,996 from holding Touchstone Focused Fund or generate 33.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentinel International Equity vs. Touchstone Focused Fund
Performance |
| Timeline |
| Sentinel International |
| Touchstone Focused |
Sentinel International and Touchstone Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentinel International and Touchstone Focused
The main advantage of trading using opposite Sentinel International and Touchstone Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel International position performs unexpectedly, Touchstone Focused 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 Focused will offset losses from the drop in Touchstone Focused's long position.| Sentinel International vs. Sentinel International Equity | Sentinel International vs. Sentinel Mon Stock | Sentinel International vs. Sentinel Balanced Fund | Sentinel International vs. Sentinel Small Pany |
| Touchstone Focused vs. Touchstone Sands Capital | Touchstone Focused vs. Mid Cap Growth | Touchstone Focused vs. Mid Cap Growth | Touchstone Focused vs. Sentinel Small Pany |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |