Correlation Between Oil Gas and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Oil Gas 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 Oil Gas and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Gas Ultrasector and Massmutual Select Total, you can compare the effects of market volatilities on Oil Gas 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 Oil Gas with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Gas and Massmutual Select.
Diversification Opportunities for Oil Gas and Massmutual Select
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oil and Massmutual is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oil Gas Ultrasector and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total and Oil Gas 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 Oil Gas Ultrasector 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 Total has no effect on the direction of Oil Gas i.e., Oil Gas and Massmutual Select go up and down completely randomly.
Pair Corralation between Oil Gas and Massmutual Select
Assuming the 90 days horizon Oil Gas Ultrasector is expected to generate 4.17 times more return on investment than Massmutual Select. However, Oil Gas is 4.17 times more volatile than Massmutual Select Total. It trades about 0.02 of its potential returns per unit of risk. Massmutual Select Total is currently generating about 0.03 per unit of risk. If you would invest 3,563 in Oil Gas Ultrasector on September 1, 2024 and sell it today you would earn a total of 425.00 from holding Oil Gas Ultrasector or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oil Gas Ultrasector vs. Massmutual Select Total
Performance |
| Timeline |
| Oil Gas Ultrasector |
| Massmutual Select Total |
Oil Gas and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Gas and Massmutual Select
The main advantage of trading using opposite Oil Gas and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Gas 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.| Oil Gas vs. Oil Gas Ultrasector | Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector |
| Massmutual Select vs. Oil Gas Ultrasector | Massmutual Select vs. Dreyfus Natural Resources | Massmutual Select vs. Alpsalerian Energy Infrastructure | Massmutual Select vs. Energy Services Fund |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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