Correlation Between Touchstone Small and Artisan Global

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

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

Diversification Opportunities for Touchstone Small and Artisan Global

0.0

Correlation Coefficient

Touchstone Small  Artisan Global

Pay attention - limited upside

The 3 months correlation between Touchstone and Artisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Cap and Artisan Global Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Discovery and Touchstone Small 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 Small Cap are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Discovery has no effect on the direction of Touchstone Small i.e., Touchstone Small and Artisan Global go up and down completely randomly.

Pair Corralation between Touchstone Small and Artisan Global

If you would invest  3,274  in Touchstone Small Cap on August 27, 2024 and sell it today you would earn a total of  863.00  from holding Touchstone Small Cap or generate 26.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Touchstone Small Cap  vs.  Artisan Global Discovery

Touchstone Small Cap

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone Small Cap are ranked lower than 10 (%) 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 December 2024.

Artisan Global Discovery

Risk-Adjusted Performance

0 of 100

OK

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

Pair Trading with Touchstone Small and Artisan Global

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

The idea behind Touchstone Small Cap and Artisan Global Discovery 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.