Correlation Between Baillie Gifford and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Massmutual Retiresmart 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 Retiresmart 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 Retiresmart 2050, you can compare the effects of market volatilities on Baillie Gifford and Massmutual Retiresmart 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 Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Massmutual Retiresmart.
Diversification Opportunities for Baillie Gifford and Massmutual Retiresmart
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and Massmutual is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Massmutual Retiresmart 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Baillie Gifford and Massmutual Retiresmart
Assuming the 90 days horizon Baillie Gifford Health is expected to under-perform the Massmutual Retiresmart. In addition to that, Baillie Gifford is 2.94 times more volatile than Massmutual Retiresmart 2050. It trades about -0.01 of its total potential returns per unit of risk. Massmutual Retiresmart 2050 is currently generating about 0.31 per unit of volatility. If you would invest 910.00 in Massmutual Retiresmart 2050 on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Massmutual Retiresmart 2050 or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baillie Gifford Health vs. Massmutual Retiresmart 2050
Performance |
| Timeline |
| Baillie Gifford Health |
| Massmutual Retiresmart |
Baillie Gifford and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Massmutual Retiresmart
The main advantage of trading using opposite Baillie Gifford and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford International |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |