Correlation Between Artisan Focus and Touchstone International

Can any of the company-specific risk be diversified away by investing in both Artisan Focus and Touchstone International 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 Artisan Focus and Touchstone International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Focus and Touchstone International Equity, you can compare the effects of market volatilities on Artisan Focus and Touchstone International 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 Artisan Focus with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Focus and Touchstone International.

Diversification Opportunities for Artisan Focus and Touchstone International

0.5

Correlation Coefficient

Artisan Focus  Touchstone International

Very weak diversification

The 3 months correlation between Artisan and Touchstone is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Focus and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Artisan Focus 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 Artisan Focus are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Artisan Focus i.e., Artisan Focus and Touchstone International go up and down completely randomly.

Pair Corralation between Artisan Focus and Touchstone International

Assuming the 90 days horizon Artisan Focus is expected to generate 2.05 times less return on investment than Touchstone International. In addition to that, Artisan Focus is 1.36 times more volatile than Touchstone International Equity. It trades about 0.08 of its total potential returns per unit of risk. Touchstone International Equity is currently generating about 0.21 per unit of volatility. If you would invest  1,756  in Touchstone International Equity on September 17, 2025 and sell it today you would earn a total of  234.00  from holding Touchstone International Equity or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Artisan Focus  vs.  Touchstone International Equit

Artisan Focus

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Focus 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 Focus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Touchstone International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone International Equity are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Touchstone International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Artisan Focus and Touchstone International

The main advantage of trading using opposite Artisan Focus and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Focus position performs unexpectedly, Touchstone International 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 International will offset losses from the drop in Touchstone International's long position.

The idea behind Artisan Focus and Touchstone International 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..