Correlation Between Baron Health and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Baron Health 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 Baron Health and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Massmutual Select Mid Cap, you can compare the effects of market volatilities on Baron Health 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 Baron Health with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Massmutual Select.
Diversification Opportunities for Baron Health and Massmutual Select
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baron and Massmutual is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care 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 Baron Health 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 Baron Health Care 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 Baron Health i.e., Baron Health and Massmutual Select go up and down completely randomly.
Pair Corralation between Baron Health and Massmutual Select
Assuming the 90 days horizon Baron Health is expected to generate 3.61 times less return on investment than Massmutual Select. In addition to that, Baron Health is 1.37 times more volatile than Massmutual Select Mid Cap. It trades about 0.08 of its total potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.4 per unit of volatility. If you would invest 1,320 in Massmutual Select Mid Cap on September 1, 2024 and sell it today you would earn a total of 90.00 from holding Massmutual Select Mid Cap or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baron Health Care vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Baron Health Care |
| Massmutual Select Mid |
Baron Health and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Massmutual Select
The main advantage of trading using opposite Baron Health and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health 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.| Baron Health vs. California High Yield Municipal | Baron Health vs. Franklin High Income | Baron Health vs. T Rowe Price | Baron Health vs. Needham Aggressive Growth |
| Massmutual Select vs. Guggenheim Risk Managed | Massmutual Select vs. Msif Real Estate | Massmutual Select vs. Dunham Real Estate | Massmutual Select vs. Us Real Estate |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |