Correlation Between Touchstone International and Artisan Select

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Can any of the company-specific risk be diversified away by investing in both Touchstone International and Artisan Select 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 International and Artisan Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone International Equity and Artisan Select Equity, you can compare the effects of market volatilities on Touchstone International and Artisan Select 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 International with a short position of Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Artisan Select.

Diversification Opportunities for Touchstone International and Artisan Select

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Touchstone and Artisan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Equit and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity and Touchstone International 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 International Equity are associated (or correlated) with Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Touchstone International i.e., Touchstone International and Artisan Select go up and down completely randomly.

Pair Corralation between Touchstone International and Artisan Select

Assuming the 90 days horizon Touchstone International Equity is expected to generate 1.07 times more return on investment than Artisan Select. However, Touchstone International is 1.07 times more volatile than Artisan Select Equity. It trades about 0.06 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.06 per unit of risk. If you would invest  1,914  in Touchstone International Equity on August 26, 2025 and sell it today you would earn a total of  36.00  from holding Touchstone International Equity or generate 1.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Touchstone International Equit  vs.  Artisan Select Equity

 Performance 
       Timeline  
Touchstone International 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone International Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Touchstone International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Artisan Select Equity 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Artisan Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Touchstone International and Artisan Select Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Touchstone International and Artisan Select

The main advantage of trading using opposite Touchstone International and Artisan Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Artisan Select 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 Artisan Select will offset losses from the drop in Artisan Select's long position.
The idea behind Touchstone International Equity and Artisan Select Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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