Correlation Between Chase Growth and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Massmutual Premier Small, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Massmutual Premier.
Diversification Opportunities for Chase Growth and Massmutual Premier
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Massmutual is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Massmutual Premier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Small and Chase Growth 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 Chase Growth Fund 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 Small has no effect on the direction of Chase Growth i.e., Chase Growth and Massmutual Premier go up and down completely randomly.
Pair Corralation between Chase Growth and Massmutual Premier
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Massmutual Premier. In addition to that, Chase Growth is 4.13 times more volatile than Massmutual Premier Small. It trades about -0.21 of its total potential returns per unit of risk. Massmutual Premier Small is currently generating about 0.04 per unit of volatility. If you would invest 1,925 in Massmutual Premier Small on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Premier Small or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chase Growth Fund vs. Massmutual Premier Small
Performance |
| Timeline |
| Chase Growth |
| Massmutual Premier Small |
Chase Growth and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Massmutual Premier
The main advantage of trading using opposite Chase Growth and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Massmutual Premier vs. Americafirst Large Cap | Massmutual Premier vs. Dana Large Cap | Massmutual Premier vs. American Mutual Fund | Massmutual Premier vs. Lord Abbett Affiliated |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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