Correlation Between Needham Aggressive and Touchstone Sustainability

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

By analyzing existing cross correlation between Needham Aggressive Growth and Touchstone Sustainability And, you can compare the effects of market volatilities on Needham Aggressive and Touchstone Sustainability 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 Needham Aggressive with a short position of Touchstone Sustainability. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Touchstone Sustainability.

Diversification Opportunities for Needham Aggressive and Touchstone Sustainability

0.68

Correlation Coefficient

Needham Aggressive  Touchstone Sustainability

Poor diversification

The 3 months correlation between Needham and Touchstone is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Touchstone Sustainability And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Sustainability and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Touchstone Sustainability. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Sustainability has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Touchstone Sustainability go up and down completely randomly.

Pair Corralation between Needham Aggressive and Touchstone Sustainability

Assuming the 90 days horizon Needham Aggressive is expected to generate 46.14 times less return on investment than Touchstone Sustainability. In addition to that, Needham Aggressive is 2.0 times more volatile than Touchstone Sustainability And. It trades about 0.0 of its total potential returns per unit of risk. Touchstone Sustainability And is currently generating about 0.08 per unit of volatility. If you would invest  3,120  in Touchstone Sustainability And on August 21, 2025 and sell it today you would earn a total of  123.00  from holding Touchstone Sustainability And or generate 3.94% return on investment over 90 days.

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

Needham Aggressive Growth  vs.  Touchstone Sustainability And

Needham Aggressive Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Needham Aggressive Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Needham Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Touchstone Sustainability

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone Sustainability And are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Touchstone Sustainability is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Needham Aggressive and Touchstone Sustainability

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

The idea behind Needham Aggressive Growth and Touchstone Sustainability And 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.