Correlation Between Barings Global and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Barings Global and Massmutual Premier 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 Barings Global and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Massmutual Premier Global, you can compare the effects of market volatilities on Barings Global and Massmutual Premier 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 Barings Global with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Massmutual Premier.
Diversification Opportunities for Barings Global and Massmutual Premier
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Massmutual is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Massmutual Premier Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Global and Barings Global 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 Barings Global Floating are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier Global has no effect on the direction of Barings Global i.e., Barings Global and Massmutual Premier go up and down completely randomly.
Pair Corralation between Barings Global and Massmutual Premier
Assuming the 90 days horizon Barings Global is expected to generate 3.21 times less return on investment than Massmutual Premier. But when comparing it to its historical volatility, Barings Global Floating is 5.15 times less risky than Massmutual Premier. It trades about 0.2 of its potential returns per unit of risk. Massmutual Premier Global is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,015 in Massmutual Premier Global on November 22, 2024 and sell it today you would earn a total of 22.00 from holding Massmutual Premier Global or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Massmutual Premier Global
Performance |
| Timeline |
| Barings Global Floating |
| Massmutual Premier Global |
Barings Global and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Massmutual Premier
The main advantage of trading using opposite Barings Global and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Massmutual Premier 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 Premier will offset losses from the drop in Massmutual Premier's long position.| Barings Global vs. Qs Global Equity | Barings Global vs. Rbc Global Equity | Barings Global vs. Dreyfusstandish Global Fixed | Barings Global vs. Dws Equity Sector |
| Massmutual Premier vs. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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