Correlation Between Vanguard Strategic and Touchstone Sands
Can any of the company-specific risk be diversified away by investing in both Vanguard Strategic and Touchstone Sands 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 Vanguard Strategic and Touchstone Sands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Strategic Small Cap and Touchstone Sands Capital, you can compare the effects of market volatilities on Vanguard Strategic and Touchstone Sands 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 Vanguard Strategic with a short position of Touchstone Sands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Strategic and Touchstone Sands.
Diversification Opportunities for Vanguard Strategic and Touchstone Sands
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and Touchstone is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Strategic Small Cap and Touchstone Sands Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Sands Capital and Vanguard Strategic 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 Vanguard Strategic Small Cap are associated (or correlated) with Touchstone Sands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Sands Capital has no effect on the direction of Vanguard Strategic i.e., Vanguard Strategic and Touchstone Sands go up and down completely randomly.
Pair Corralation between Vanguard Strategic and Touchstone Sands
Assuming the 90 days horizon Vanguard Strategic Small Cap is expected to generate 1.05 times more return on investment than Touchstone Sands. However, Vanguard Strategic is 1.05 times more volatile than Touchstone Sands Capital. It trades about 0.19 of its potential returns per unit of risk. Touchstone Sands Capital is currently generating about 0.14 per unit of risk. If you would invest 3,744 in Vanguard Strategic Small Cap on June 1, 2025 and sell it today you would earn a total of 523.00 from holding Vanguard Strategic Small Cap or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Strategic Small Cap vs. Touchstone Sands Capital
Performance |
| Timeline |
| Vanguard Strategic |
| Touchstone Sands Capital |
Vanguard Strategic and Touchstone Sands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Strategic and Touchstone Sands
The main advantage of trading using opposite Vanguard Strategic and Touchstone Sands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Strategic position performs unexpectedly, Touchstone Sands 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 Touchstone Sands will offset losses from the drop in Touchstone Sands' long position.| Vanguard Strategic vs. Vanguard Explorer Value | Vanguard Strategic vs. Vanguard Strategic Equity | Vanguard Strategic vs. Vanguard Diversified Equity | Vanguard Strategic vs. Vanguard Mid Cap |
| Touchstone Sands vs. Voya Target Retirement | Touchstone Sands vs. Moderate Balanced Allocation | Touchstone Sands vs. Cornerstone Moderately Aggressive | Touchstone Sands vs. Lifestyle Ii Moderate |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |