Correlation Between Touchstone Premium and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Touchstone Premium and Europacific Growth 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 Premium and Europacific Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Premium Yield and Europacific Growth Fund, you can compare the effects of market volatilities on Touchstone Premium and Europacific Growth 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 Premium with a short position of Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Premium and Europacific Growth.
Diversification Opportunities for Touchstone Premium and Europacific Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Europacific is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Premium Yield and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth and Touchstone Premium 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 Premium Yield are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Touchstone Premium i.e., Touchstone Premium and Europacific Growth go up and down completely randomly.
Pair Corralation between Touchstone Premium and Europacific Growth
Assuming the 90 days horizon Touchstone Premium is expected to generate 1.23 times less return on investment than Europacific Growth. In addition to that, Touchstone Premium is 1.25 times more volatile than Europacific Growth Fund. It trades about 0.2 of its total potential returns per unit of risk. Europacific Growth Fund is currently generating about 0.3 per unit of volatility. If you would invest 5,414 in Europacific Growth Fund on April 24, 2025 and sell it today you would earn a total of 675.00 from holding Europacific Growth Fund or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Premium Yield vs. Europacific Growth Fund
Performance |
| Timeline |
| Touchstone Premium Yield |
| Europacific Growth |
Touchstone Premium and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Premium and Europacific Growth
The main advantage of trading using opposite Touchstone Premium and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Premium position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| Touchstone Premium vs. Pnc Emerging Markets | Touchstone Premium vs. Ab All Market | Touchstone Premium vs. Auer Growth Fund | Touchstone Premium vs. Siit Emerging Markets |
| Europacific Growth vs. Income Fund Of | Europacific Growth vs. American Funds 2015 | Europacific Growth vs. New World Fund | Europacific Growth vs. American Mutual Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |