Correlation Between Baillie Gifford and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford 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 Baillie Gifford and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Health and Massmutual Select Mid Cap, you can compare the effects of market volatilities on Baillie Gifford 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 Baillie Gifford with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Massmutual Select.
Diversification Opportunities for Baillie Gifford and Massmutual Select
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baillie and Massmutual is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Baillie Gifford 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 Baillie Gifford Health 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 Baillie Gifford i.e., Baillie Gifford and Massmutual Select go up and down completely randomly.
Pair Corralation between Baillie Gifford and Massmutual Select
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Massmutual Select. In addition to that, Baillie Gifford is 1.81 times more volatile than Massmutual Select Mid Cap. It trades about -0.11 of its total potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.29 per unit of volatility. If you would invest 1,297 in Massmutual Select Mid Cap on August 29, 2024 and sell it today you would earn a total of 70.00 from holding Massmutual Select Mid Cap or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Baillie Gifford Health |
| Massmutual Select Mid |
Baillie Gifford and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Massmutual Select
The main advantage of trading using opposite Baillie Gifford and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford 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.| Baillie Gifford vs. Fidelity Advisor Technology | Baillie Gifford vs. Fidelity Advisor Biotechnology | Baillie Gifford vs. Fidelity Advisor Financial | Baillie Gifford vs. Fidelity Advisor Utilities |
| Massmutual Select vs. Mesirow Financial Small | Massmutual Select vs. Fidelity Advisor Financial | Massmutual Select vs. Angel Oak Financial | Massmutual Select vs. Goldman Sachs Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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