Correlation Between Artisan Small and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Artisan Small 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 Artisan Small and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and Massmutual Select Small, you can compare the effects of market volatilities on Artisan Small 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 Artisan Small with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Massmutual Select.
Diversification Opportunities for Artisan Small and Massmutual Select
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Massmutual is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and Artisan 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 Artisan Small Cap 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 Small has no effect on the direction of Artisan Small i.e., Artisan Small and Massmutual Select go up and down completely randomly.
Pair Corralation between Artisan Small and Massmutual Select
Assuming the 90 days horizon Artisan Small is expected to generate 1.14 times less return on investment than Massmutual Select. In addition to that, Artisan Small is 1.01 times more volatile than Massmutual Select Small. It trades about 0.19 of its total potential returns per unit of risk. Massmutual Select Small is currently generating about 0.22 per unit of volatility. If you would invest 1,005 in Massmutual Select Small on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Massmutual Select Small or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Massmutual Select Small
Performance |
| Timeline |
| Artisan Small Cap |
| Massmutual Select Small |
Artisan Small and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Massmutual Select
The main advantage of trading using opposite Artisan Small and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small 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.| Artisan Small vs. Western Asset Diversified | Artisan Small vs. Pgim Conservative Retirement | Artisan Small vs. American Funds Conservative | Artisan Small vs. Massmutual Premier Diversified |
| Massmutual Select vs. Needham Aggressive Growth | Massmutual Select vs. Vanguard High Yield Tax Exempt | Massmutual Select vs. Pace High Yield | Massmutual Select vs. California High Yield Municipal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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