Correlation Between Touchstone Small and Sentinel International
Can any of the company-specific risk be diversified away by investing in both Touchstone Small and Sentinel International 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 Small and Sentinel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Small Pany and Sentinel International Equity, you can compare the effects of market volatilities on Touchstone Small and Sentinel International 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 Small with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Small and Sentinel International.
Diversification Opportunities for Touchstone Small and Sentinel International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TOUCHSTONE and Sentinel is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Pany and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and Touchstone Small 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 Small Pany are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of Touchstone Small i.e., Touchstone Small and Sentinel International go up and down completely randomly.
Pair Corralation between Touchstone Small and Sentinel International
Assuming the 90 days horizon Touchstone Small Pany is expected to generate 1.68 times more return on investment than Sentinel International. However, Touchstone Small is 1.68 times more volatile than Sentinel International Equity. It trades about 0.21 of its potential returns per unit of risk. Sentinel International Equity is currently generating about 0.31 per unit of risk. If you would invest 615.00 in Touchstone Small Pany on April 22, 2025 and sell it today you would earn a total of 90.00 from holding Touchstone Small Pany or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Small Pany vs. Sentinel International Equity
Performance |
| Timeline |
| Touchstone Small Pany |
| Sentinel International |
Touchstone Small and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Small and Sentinel International
The main advantage of trading using opposite Touchstone Small and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Small position performs unexpectedly, Sentinel International 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 Sentinel International will offset losses from the drop in Sentinel International's long position.| Touchstone Small vs. Touchstone Sands Capital | Touchstone Small vs. Mid Cap Growth | Touchstone Small vs. Mid Cap Growth | Touchstone Small vs. Sentinel Small Pany |
| Sentinel International vs. Sentinel Mon Stock | Sentinel International vs. Sentinel Small Pany | Sentinel International vs. Sentinel Balanced Fund | Sentinel International vs. Touchstone Sustainability And |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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