Correlation Between Touchstone Funds and The National
Can any of the company-specific risk be diversified away by investing in both Touchstone Funds and The National 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 Funds and The National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Funds Group and The National Tax Free, you can compare the effects of market volatilities on Touchstone Funds and The National 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 Funds with a short position of The National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Funds and The National.
Diversification Opportunities for Touchstone Funds and The National
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and The is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Funds Group and The National Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Tax and Touchstone Funds 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 Funds Group are associated (or correlated) with The National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Tax has no effect on the direction of Touchstone Funds i.e., Touchstone Funds and The National go up and down completely randomly.
Pair Corralation between Touchstone Funds and The National
Assuming the 90 days horizon Touchstone Funds Group is expected to generate 1.22 times more return on investment than The National. However, Touchstone Funds is 1.22 times more volatile than The National Tax Free. It trades about 0.08 of its potential returns per unit of risk. The National Tax Free is currently generating about 0.07 per unit of risk. If you would invest 869.00 in Touchstone Funds Group on July 28, 2025 and sell it today you would earn a total of 59.00 from holding Touchstone Funds Group or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Funds Group vs. The National Tax Free
Performance |
| Timeline |
| Touchstone Funds |
| National Tax |
Touchstone Funds and The National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Funds and The National
The main advantage of trading using opposite Touchstone Funds and The National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Funds position performs unexpectedly, The National 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 The National will offset losses from the drop in The National's long position.| Touchstone Funds vs. Dreyfusstandish Global Fixed | Touchstone Funds vs. Balanced Fund Retail | Touchstone Funds vs. T Rowe Price | Touchstone Funds vs. Aqr Long Short Equity |
| The National vs. New Jersey Tax Free | The National vs. Amg Managers Loomis | The National vs. Jpmorgan Porate Bond | The National vs. Aberdeen Small Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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