Correlation Between Dana Large and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Dana Large 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 Dana Large and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Massmutual Select Small, you can compare the effects of market volatilities on Dana Large 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 Dana Large with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Massmutual Select.
Diversification Opportunities for Dana Large and Massmutual Select
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dana and Massmutual is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and Dana Large 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 Dana Large Cap 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 Small has no effect on the direction of Dana Large i.e., Dana Large and Massmutual Select go up and down completely randomly.
Pair Corralation between Dana Large and Massmutual Select
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.69 times more return on investment than Massmutual Select. However, Dana Large Cap is 1.46 times less risky than Massmutual Select. It trades about 0.11 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.07 per unit of risk. If you would invest 1,747 in Dana Large Cap on September 12, 2024 and sell it today you would earn a total of 955.00 from holding Dana Large Cap or generate 54.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Massmutual Select Small
Performance |
| Timeline |
| Dana Large Cap |
| Massmutual Select Small |
Dana Large and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Massmutual Select
The main advantage of trading using opposite Dana Large and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large 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.| Dana Large vs. Intermediate Government Bond | Dana Large vs. Prudential Government Income | Dana Large vs. Us Government Securities | Dana Large vs. Virtus Seix Government |
| Massmutual Select vs. Needham Aggressive Growth | Massmutual Select vs. Ultramid Cap Profund Ultramid Cap | Massmutual Select vs. HUMANA INC | Massmutual Select 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |