Correlation Between Touchstone Funds and Rbc Global

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

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

Diversification Opportunities for Touchstone Funds and Rbc Global

0.51

Correlation Coefficient

Touchstone Funds  Rbc Global

Very weak diversification

The 3 months correlation between Touchstone and Rbc is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Funds Group and Rbc Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Global Equity and Touchstone Funds 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 Touchstone Funds Group are associated (or correlated) with Rbc Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Global Equity has no effect on the direction of Touchstone Funds i.e., Touchstone Funds and Rbc Global go up and down completely randomly.

Pair Corralation between Touchstone Funds and Rbc Global

Assuming the 90 days horizon Touchstone Funds Group is expected to under-perform the Rbc Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Touchstone Funds Group is 1.48 times less risky than Rbc Global. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Rbc Global Equity is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  1,139  in Rbc Global Equity on May 2, 2025 and sell it today you would earn a total of  30.00  from holding Rbc Global Equity or generate 2.63% return on investment over 90 days.

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

Touchstone Funds Group  vs.  Rbc Global Equity

Touchstone Funds

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone Funds Group are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Touchstone Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rbc Global Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rbc Global Equity are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Rbc Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Touchstone Funds and Rbc Global

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

The idea behind Touchstone Funds Group and Rbc Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.