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 High, 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
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chase and Massmutual is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Massmutual Premier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier High 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 High 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 generate 7.23 times more return on investment than Massmutual Premier. However, Chase Growth is 7.23 times more volatile than Massmutual Premier High. It trades about 0.24 of its potential returns per unit of risk. Massmutual Premier High is currently generating about 0.3 per unit of risk. If you would invest 1,671 in Chase Growth Fund on August 29, 2024 and sell it today you would earn a total of 91.00 from holding Chase Growth Fund or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chase Growth Fund vs. Massmutual Premier High
Performance |
| Timeline |
| Chase Growth |
| Massmutual Premier High |
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. Growth Fund Of | Chase Growth vs. HUMANA INC | Chase Growth vs. Aquagold International | Chase Growth vs. Barloworld Ltd ADR |
| Massmutual Premier vs. Prudential High Yield | Massmutual Premier vs. HUMANA INC | Massmutual Premier vs. Aquagold International | Massmutual Premier vs. Barloworld Ltd ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |