Correlation Between Black Oak and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Black Oak 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 Black Oak and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Oak Emerging and Massmutual Select Mid Cap, you can compare the effects of market volatilities on Black Oak 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 Black Oak with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Oak and Massmutual Select.
Diversification Opportunities for Black Oak and Massmutual Select
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Black and Massmutual is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Black Oak Emerging 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 Black Oak 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 Black Oak Emerging 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 Black Oak i.e., Black Oak and Massmutual Select go up and down completely randomly.
Pair Corralation between Black Oak and Massmutual Select
Assuming the 90 days horizon Black Oak Emerging is expected to generate 0.34 times more return on investment than Massmutual Select. However, Black Oak Emerging is 2.92 times less risky than Massmutual Select. It trades about 0.13 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about -0.21 per unit of risk. If you would invest 795.00 in Black Oak Emerging on September 19, 2024 and sell it today you would earn a total of 19.00 from holding Black Oak Emerging or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Oak Emerging vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Black Oak Emerging |
| Massmutual Select Mid |
Black Oak and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Oak and Massmutual Select
The main advantage of trading using opposite Black Oak and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Oak 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.| Black Oak vs. Red Oak Technology | Black Oak vs. White Oak Select | Black Oak vs. Live Oak Health | Black Oak vs. Berkshire Focus |
| Massmutual Select vs. Nasdaq 100 2x Strategy | Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Black Oak Emerging | Massmutual Select vs. Origin Emerging Markets |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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