Correlation Between High Yield and Touchstone Focused
Can any of the company-specific risk be diversified away by investing in both High Yield 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 High Yield and Touchstone Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Fund and Touchstone Focused Fund, you can compare the effects of market volatilities on High Yield 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 High Yield with a short position of Touchstone Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Touchstone Focused.
Diversification Opportunities for High Yield and Touchstone Focused
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between High and Touchstone is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund and Touchstone Focused Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Focused and High Yield 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 High Yield Fund 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 High Yield i.e., High Yield and Touchstone Focused go up and down completely randomly.
Pair Corralation between High Yield and Touchstone Focused
If you would invest 7,517 in Touchstone Focused Fund on June 1, 2025 and sell it today you would earn a total of 729.00 from holding Touchstone Focused Fund or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
High Yield Fund vs. Touchstone Focused Fund
Performance |
| Timeline |
| High Yield Fund |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Touchstone Focused |
High Yield and Touchstone Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Touchstone Focused
The main advantage of trading using opposite High Yield and Touchstone Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield 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.| High Yield vs. Calamos Growth Fund | High Yield vs. Auer Growth Fund | High Yield vs. Eagle Growth Income | High Yield vs. Artisan Small Cap |
| Touchstone Focused vs. Auer Growth Fund | Touchstone Focused vs. Qs Defensive Growth | Touchstone Focused vs. Qs Moderate Growth | Touchstone Focused vs. Eagle Growth Income |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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