Correlation Between Touchstone Focused and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Touchstone Focused and Mid Cap 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 Focused and Mid Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Focused Fund and Mid Cap Growth, you can compare the effects of market volatilities on Touchstone Focused and Mid Cap 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 Focused with a short position of Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Focused and Mid Cap.
Diversification Opportunities for Touchstone Focused and Mid Cap
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Mid is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Focused Fund and Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Growth and Touchstone Focused 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 Focused Fund are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Growth has no effect on the direction of Touchstone Focused i.e., Touchstone Focused and Mid Cap go up and down completely randomly.
Pair Corralation between Touchstone Focused and Mid Cap
Assuming the 90 days horizon Touchstone Focused Fund is expected to generate 0.72 times more return on investment than Mid Cap. However, Touchstone Focused Fund is 1.39 times less risky than Mid Cap. It trades about 0.25 of its potential returns per unit of risk. Mid Cap Growth is currently generating about 0.12 per unit of risk. If you would invest 7,448 in Touchstone Focused Fund on May 30, 2025 and sell it today you would earn a total of 777.00 from holding Touchstone Focused Fund or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Touchstone Focused Fund vs. Mid Cap Growth
Performance |
| Timeline |
| Touchstone Focused |
| Mid Cap Growth |
Touchstone Focused and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Focused and Mid Cap
The main advantage of trading using opposite Touchstone Focused and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Focused position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Touchstone Focused vs. Ips Strategic Capital | Touchstone Focused vs. Abr 7525 Volatility | Touchstone Focused vs. Wmcanx | Touchstone Focused vs. Furyax |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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