Correlation Between Touchstone International and Wabmsx
Can any of the company-specific risk be diversified away by investing in both Touchstone International and Wabmsx 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 Wabmsx 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 Wabmsx, you can compare the effects of market volatilities on Touchstone International and Wabmsx 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 Wabmsx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Wabmsx.
Diversification Opportunities for Touchstone International and Wabmsx
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Wabmsx is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Equit and Wabmsx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabmsx 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 Wabmsx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabmsx has no effect on the direction of Touchstone International i.e., Touchstone International and Wabmsx go up and down completely randomly.
Pair Corralation between Touchstone International and Wabmsx
Assuming the 90 days horizon Touchstone International Equity is expected to generate 1.03 times more return on investment than Wabmsx. However, Touchstone International is 1.03 times more volatile than Wabmsx. It trades about 0.22 of its potential returns per unit of risk. Wabmsx is currently generating about 0.12 per unit of risk. If you would invest 1,791 in Touchstone International Equity on July 27, 2025 and sell it today you would earn a total of 165.00 from holding Touchstone International Equity or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Equit vs. Wabmsx
Performance |
| Timeline |
| Touchstone International |
| Wabmsx |
Touchstone International and Wabmsx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Wabmsx
The main advantage of trading using opposite Touchstone International and Wabmsx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Wabmsx 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 Wabmsx will offset losses from the drop in Wabmsx's long position.| Touchstone International vs. Touchstone Small Cap | Touchstone International vs. Touchstone Sands Capital | Touchstone International vs. Mid Cap Growth | Touchstone International vs. Mid Cap Growth |
| Wabmsx vs. Franklin Natural Resources | Wabmsx vs. Global Resources Fund | Wabmsx vs. Dreyfus Natural Resources | Wabmsx vs. Ivy Natural Resources |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |