Correlation Between Firsthand Alternative and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Massmutual Select Mid, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Massmutual Select.
Diversification Opportunities for Firsthand Alternative and Massmutual Select
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Massmutual is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Massmutual Select Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Firsthand Alternative 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 Firsthand Alternative Energy 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 Mid has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Massmutual Select go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Massmutual Select
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 1.34 times more return on investment than Massmutual Select. However, Firsthand Alternative is 1.34 times more volatile than Massmutual Select Mid. It trades about 0.16 of its potential returns per unit of risk. Massmutual Select Mid is currently generating about 0.12 per unit of risk. If you would invest 985.00 in Firsthand Alternative Energy on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Firsthand Alternative Energy or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Massmutual Select Mid
Performance |
| Timeline |
| Firsthand Alternative |
| Massmutual Select Mid |
Firsthand Alternative and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Massmutual Select
The main advantage of trading using opposite Firsthand Alternative and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Massmutual Select vs. Ab Global Bond | Massmutual Select vs. Alliancebernstein Bond | Massmutual Select vs. California Bond Fund | Massmutual Select vs. Touchstone Premium Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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