Correlation Between Boston Partners and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Massmutual Select T, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Massmutual Select.
Diversification Opportunities for Boston Partners and Massmutual Select
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boston and Massmutual is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Boston Partners 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 Boston Partners Small 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 has no effect on the direction of Boston Partners i.e., Boston Partners and Massmutual Select go up and down completely randomly.
Pair Corralation between Boston Partners and Massmutual Select
Assuming the 90 days horizon Boston Partners Small is expected to generate 2.19 times more return on investment than Massmutual Select. However, Boston Partners is 2.19 times more volatile than Massmutual Select T. It trades about 0.15 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.05 per unit of risk. If you would invest 2,697 in Boston Partners Small on August 25, 2024 and sell it today you would earn a total of 237.00 from holding Boston Partners Small or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Small vs. Massmutual Select T
Performance |
| Timeline |
| Boston Partners Small |
| Massmutual Select |
Boston Partners and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Massmutual Select
The main advantage of trading using opposite Boston Partners and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
| Massmutual Select vs. American Century Etf | Massmutual Select vs. Heartland Value Plus | Massmutual Select vs. Fidelity Small Cap | Massmutual Select vs. Boston Partners Small |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |