Correlation Between Monteagle Enhanced and Touchstone International

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

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

Diversification Opportunities for Monteagle Enhanced and Touchstone International

-0.73

Correlation Coefficient

Monteagle Enhanced  Touchstone International

Pay attention - limited upside

The 3 months correlation between Monteagle and Touchstone is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Monteagle Enhanced Equity and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Monteagle Enhanced 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 Monteagle Enhanced Equity are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Monteagle Enhanced i.e., Monteagle Enhanced and Touchstone International go up and down completely randomly.

Pair Corralation between Monteagle Enhanced and Touchstone International

Assuming the 90 days horizon Monteagle Enhanced Equity is expected to under-perform the Touchstone International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Monteagle Enhanced Equity is 1.05 times less risky than Touchstone International. The mutual fund trades about -0.15 of its potential returns per unit of risk. The Touchstone International Equity is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,372  in Touchstone International Equity on December 23, 2024 and sell it today you would earn a total of  218.00  from holding Touchstone International Equity or generate 15.89% return on investment over 90 days.

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

Monteagle Enhanced Equity  vs.  Touchstone International Equit

Monteagle Enhanced Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Monteagle Enhanced Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Touchstone International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Touchstone International Equity are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Touchstone International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Monteagle Enhanced and Touchstone International

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

The idea behind Monteagle Enhanced Equity and Touchstone International 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.