Correlation Between Real Assets and Touchstone International

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

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

Diversification Opportunities for Real Assets and Touchstone International

0.9

Correlation Coefficient

Real Assets  Touchstone International

Almost no diversification

The 3 months correlation between Real and Touchstone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Real Assets Portfolio and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Real Assets 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 Real Assets Portfolio 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 Real Assets i.e., Real Assets and Touchstone International go up and down completely randomly.

Pair Corralation between Real Assets and Touchstone International

If you would invest  1,932  in Touchstone International Equity on July 22, 2025 and sell it today you would earn a total of  3.00  from holding Touchstone International Equity or generate 0.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	4.76%
Values	Daily Returns

Real Assets Portfolio  vs.  Touchstone International Equit

Real Assets Portfolio

Risk-Adjusted Performance

Weakest

Over the last 90 days Real Assets Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Real Assets 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 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Touchstone International may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Real Assets and Touchstone International

The main advantage of trading using opposite Real Assets and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Assets 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 Real Assets Portfolio 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.