Correlation Between Credit Suisse and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Credit Suisse 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 Credit Suisse and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Multialternative and Massmutual Premier Inflation Protected, you can compare the effects of market volatilities on Credit Suisse 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 Credit Suisse with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Massmutual Premier.
Diversification Opportunities for Credit Suisse and Massmutual Premier
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Massmutual is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Massmutual Premier Inflation P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Credit Suisse 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 Credit Suisse Multialternative 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 has no effect on the direction of Credit Suisse i.e., Credit Suisse and Massmutual Premier go up and down completely randomly.
Pair Corralation between Credit Suisse and Massmutual Premier
Assuming the 90 days horizon Credit Suisse is expected to generate 1.24 times less return on investment than Massmutual Premier. In addition to that, Credit Suisse is 1.14 times more volatile than Massmutual Premier Inflation Protected. It trades about 0.03 of its total potential returns per unit of risk. Massmutual Premier Inflation Protected is currently generating about 0.05 per unit of volatility. If you would invest 878.00 in Massmutual Premier Inflation Protected on October 20, 2024 and sell it today you would earn a total of 31.00 from holding Massmutual Premier Inflation Protected or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Massmutual Premier Inflation P
Performance |
| Timeline |
| Credit Suisse Multia |
| Massmutual Premier |
Credit Suisse and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Massmutual Premier
The main advantage of trading using opposite Credit Suisse and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse 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.| Credit Suisse vs. Huber Capital Diversified | Credit Suisse vs. Stone Ridge Diversified | Credit Suisse vs. Madison Diversified Income | Credit Suisse vs. Thrivent Diversified Income |
| Massmutual Premier vs. Ab New York | Massmutual Premier vs. Tax Managed Large Cap | Massmutual Premier vs. Ab E Opportunities | Massmutual Premier vs. Volumetric Fund Volumetric |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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