Correlation Between Touchstone Sands and Active Bond
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands and Active Bond 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 Active Bond 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 Active Bond Fund, you can compare the effects of market volatilities on Touchstone Sands and Active Bond 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 Active Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Active Bond.
Diversification Opportunities for Touchstone Sands and Active Bond
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Active is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Active Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Bond Fund 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 Active Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Bond Fund has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Active Bond go up and down completely randomly.
Pair Corralation between Touchstone Sands and Active Bond
Assuming the 90 days horizon Touchstone Sands Capital is expected to generate 2.85 times more return on investment than Active Bond. However, Touchstone Sands is 2.85 times more volatile than Active Bond Fund. It trades about 0.16 of its potential returns per unit of risk. Active Bond Fund is currently generating about 0.11 per unit of risk. If you would invest 1,418 in Touchstone Sands Capital on April 24, 2025 and sell it today you would earn a total of 111.00 from holding Touchstone Sands Capital or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Active Bond Fund
Performance |
| Timeline |
| Touchstone Sands Capital |
| Active Bond Fund |
Touchstone Sands and Active Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Active Bond
The main advantage of trading using opposite Touchstone Sands and Active Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands position performs unexpectedly, Active Bond 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 Active Bond will offset losses from the drop in Active Bond's long position.| Touchstone Sands vs. Ab High Income | Touchstone Sands vs. Lord Abbett Short | Touchstone Sands vs. Barings High Yield | Touchstone Sands vs. Dunham High Yield |
| Active Bond vs. Barings High Yield | Active Bond vs. Multisector Bond Sma | Active Bond vs. Morningstar Defensive Bond | Active Bond vs. Bts Tactical 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |