Correlation Between Sentinel Mon and Touchstone Small

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

By analyzing existing cross correlation between Sentinel Mon Stock and Touchstone Small Pany, you can compare the effects of market volatilities on Sentinel Mon and Touchstone Small 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 Sentinel Mon with a short position of Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel Mon and Touchstone Small.

Diversification Opportunities for Sentinel Mon and Touchstone Small

0.92

Correlation Coefficient

Sentinel Mon  Touchstone Small

Almost no diversification

The 3 months correlation between Sentinel and Touchstone is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel Mon Stock and Touchstone Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Small Pany and Sentinel Mon 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 Sentinel Mon Stock are associated (or correlated) with Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Pany has no effect on the direction of Sentinel Mon i.e., Sentinel Mon and Touchstone Small go up and down completely randomly.

Pair Corralation between Sentinel Mon and Touchstone Small

Assuming the 90 days horizon Sentinel Mon Stock is expected to generate 0.76 times more return on investment than Touchstone Small. However, Sentinel Mon Stock is 1.32 times less risky than Touchstone Small. It trades about 0.33 of its potential returns per unit of risk. Touchstone Small Pany is currently generating about 0.18 per unit of risk. If you would invest  6,664  in Sentinel Mon Stock on April 30, 2025 and sell it today you would earn a total of  1,110  from holding Sentinel Mon Stock or generate 16.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Sentinel Mon Stock  vs.  Touchstone Small Pany

Sentinel Mon Stock

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sentinel Mon Stock are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Sentinel Mon showed solid returns over the last few months and may actually be approaching a breakup point.

Touchstone Small Pany

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone Small Pany are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Touchstone Small may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Sentinel Mon and Touchstone Small

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

The idea behind Sentinel Mon Stock and Touchstone Small Pany 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.