Correlation Between Mid Cap and Touchstone Flexible
Can any of the company-specific risk be diversified away by investing in both Mid Cap and Touchstone Flexible 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 Mid Cap and Touchstone Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Touchstone Flexible Income, you can compare the effects of market volatilities on Mid Cap and Touchstone Flexible 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 Mid Cap with a short position of Touchstone Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Touchstone Flexible.
Diversification Opportunities for Mid Cap and Touchstone Flexible
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mid and Touchstone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Touchstone Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Flexible and Mid Cap 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 Mid Cap Growth are associated (or correlated) with Touchstone Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Flexible has no effect on the direction of Mid Cap i.e., Mid Cap and Touchstone Flexible go up and down completely randomly.
Pair Corralation between Mid Cap and Touchstone Flexible
Assuming the 90 days horizon Mid Cap Growth is expected to generate 3.95 times more return on investment than Touchstone Flexible. However, Mid Cap is 3.95 times more volatile than Touchstone Flexible Income. It trades about 0.13 of its potential returns per unit of risk. Touchstone Flexible Income is currently generating about 0.19 per unit of risk. If you would invest 4,189 in Mid Cap Growth on May 30, 2025 and sell it today you would earn a total of 302.00 from holding Mid Cap Growth or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Mid Cap Growth vs. Touchstone Flexible Income
Performance |
| Timeline |
| Mid Cap Growth |
| Touchstone Flexible |
Mid Cap and Touchstone Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Touchstone Flexible
The main advantage of trading using opposite Mid Cap and Touchstone Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, Touchstone Flexible 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 Flexible will offset losses from the drop in Touchstone Flexible's long position.| Mid Cap vs. Wasatch Small Cap | Mid Cap vs. Victory Trivalent International | Mid Cap vs. John Hancock Disciplined | Mid Cap vs. Mfs Mid Cap |
| Touchstone Flexible vs. Artisan Small Cap | Touchstone Flexible vs. Auer Growth Fund | Touchstone Flexible vs. Needham Aggressive Growth | Touchstone Flexible vs. Qs Moderate Growth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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