Correlation Between Chase Growth and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Massmutual Select 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 Select T, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Massmutual Select.
Diversification Opportunities for Chase Growth and Massmutual Select
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Massmutual is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 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 Chase Growth i.e., Chase Growth and Massmutual Select go up and down completely randomly.
Pair Corralation between Chase Growth and Massmutual Select
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.82 times more return on investment than Massmutual Select. However, Chase Growth is 1.82 times more volatile than Massmutual Select T. It trades about 0.14 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.1 per unit of risk. If you would invest 1,264 in Chase Growth Fund on September 4, 2024 and sell it today you would earn a total of 505.00 from holding Chase Growth Fund or generate 39.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Chase Growth Fund vs. Massmutual Select T
Performance |
| Timeline |
| Chase Growth |
| Massmutual Select |
Chase Growth and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Massmutual Select
The main advantage of trading using opposite Chase Growth and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.| Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. Aquagold International | Chase Growth vs. Morningstar Unconstrained Allocation | Chase Growth vs. Thrivent High Yield |
| Massmutual Select vs. Nationwide Growth Fund | Massmutual Select vs. Champlain Mid Cap | Massmutual Select vs. Chase Growth Fund | Massmutual Select vs. William Blair Growth |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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