Correlation Between Touchstone Sands and Teton Vertible

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

By analyzing existing cross correlation between Touchstone Sands Capital and Teton Vertible Securities, you can compare the effects of market volatilities on Touchstone Sands and Teton Vertible 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 Sands with a short position of Teton Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Teton Vertible.

Diversification Opportunities for Touchstone Sands and Teton Vertible

0.96

Correlation Coefficient

Touchstone Sands  Teton Vertible

Almost no diversification

The 3 months correlation between Touchstone and Teton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Teton Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Vertible Securities and Touchstone Sands 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 Sands Capital are associated (or correlated) with Teton Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Vertible Securities has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Teton Vertible go up and down completely randomly.

Pair Corralation between Touchstone Sands and Teton Vertible

Assuming the 90 days horizon Touchstone Sands Capital is expected to generate 2.25 times more return on investment than Teton Vertible. However, Touchstone Sands is 2.25 times more volatile than Teton Vertible Securities. It trades about 0.08 of its potential returns per unit of risk. Teton Vertible Securities is currently generating about 0.04 per unit of risk. If you would invest  1,763  in Touchstone Sands Capital on March 24, 2025 and sell it today you would earn a total of  195.00  from holding Touchstone Sands Capital or generate 11.06% return on investment over 90 days.

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

Touchstone Sands Capital  vs.  Teton Vertible Securities

Touchstone Sands Capital

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone Sands Capital are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Touchstone Sands may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Teton Vertible Securities

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Teton Vertible Securities are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Teton Vertible 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 Sands and Teton Vertible

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

The idea behind Touchstone Sands Capital and Teton Vertible Securities 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.