Correlation Between Touchstone Premium and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Touchstone Premium and Intermediate-term 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 Intermediate-term 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 Intermediate Term Bond Fund, you can compare the effects of market volatilities on Touchstone Premium and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Premium and Intermediate-term.
Diversification Opportunities for Touchstone Premium and Intermediate-term
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Touchstone and Intermediate-term is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Premium Yield and Intermediate Term Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Bond 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Bond has no effect on the direction of Touchstone Premium i.e., Touchstone Premium and Intermediate-term go up and down completely randomly.
Pair Corralation between Touchstone Premium and Intermediate-term
Assuming the 90 days horizon Touchstone Premium Yield is expected to under-perform the Intermediate-term. In addition to that, Touchstone Premium is 3.41 times more volatile than Intermediate Term Bond Fund. It trades about -0.02 of its total potential returns per unit of risk. Intermediate Term Bond Fund is currently generating about 0.12 per unit of volatility. If you would invest 909.00 in Intermediate Term Bond Fund on June 4, 2025 and sell it today you would earn a total of 17.00 from holding Intermediate Term Bond Fund or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Premium Yield vs. Intermediate Term Bond Fund
Performance |
| Timeline |
| Touchstone Premium Yield |
| Intermediate Term Bond |
Touchstone Premium and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Premium and Intermediate-term
The main advantage of trading using opposite Touchstone Premium and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Premium position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Touchstone Premium vs. Touchstone Sands Capital | Touchstone Premium vs. Touchstone Sustainability And | Touchstone Premium vs. Touchstone Sustainability And |
| Intermediate-term vs. Oklahoma College Savings | Intermediate-term vs. Flexible Bond Portfolio | Intermediate-term vs. T Rowe Price | Intermediate-term vs. Massmutual Premier Diversified |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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