Correlation Between American Mutual and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both American Mutual and Massmutual Select 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 American Mutual and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Massmutual Select Diversified, you can compare the effects of market volatilities on American Mutual and Massmutual Select 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 American Mutual with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Massmutual Select.
Diversification Opportunities for American Mutual and Massmutual Select
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and MASSMUTUAL is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and American Mutual 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 American Mutual Fund are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of American Mutual i.e., American Mutual and Massmutual Select go up and down completely randomly.
Pair Corralation between American Mutual and Massmutual Select
Assuming the 90 days horizon American Mutual Fund is expected to generate 0.19 times more return on investment than Massmutual Select. However, American Mutual Fund is 5.16 times less risky than Massmutual Select. It trades about 0.15 of its potential returns per unit of risk. Massmutual Select Diversified is currently generating about -0.07 per unit of risk. If you would invest 5,756 in American Mutual Fund on September 3, 2024 and sell it today you would earn a total of 302.00 from holding American Mutual Fund or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Massmutual Select Diversified
Performance |
| Timeline |
| American Mutual |
| Massmutual Select |
American Mutual and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Massmutual Select
The main advantage of trading using opposite American Mutual and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| American Mutual vs. Vanguard Value Index | American Mutual vs. Dodge Cox Stock | American Mutual vs. American Funds American | American Mutual vs. American Funds American |
| Massmutual Select vs. Vanguard Value Index | Massmutual Select vs. Dodge Cox Stock | Massmutual Select vs. American Mutual Fund | Massmutual Select vs. American Funds American |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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