Correlation Between Fa 529 and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Fa 529 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 Fa 529 and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fa 529 Aggressive and Massmutual Select Small, you can compare the effects of market volatilities on Fa 529 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 Fa 529 with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fa 529 and Massmutual Select.
Diversification Opportunities for Fa 529 and Massmutual Select
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FFCGX and Massmutual is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fa 529 Aggressive 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 Fa 529 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 Fa 529 Aggressive 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 Fa 529 i.e., Fa 529 and Massmutual Select go up and down completely randomly.
Pair Corralation between Fa 529 and Massmutual Select
Assuming the 90 days horizon Fa 529 is expected to generate 1.17 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Fa 529 Aggressive is 1.64 times less risky than Massmutual Select. It trades about 0.12 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,279 in Massmutual Select Small on September 14, 2024 and sell it today you would earn a total of 372.00 from holding Massmutual Select Small or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Fa 529 Aggressive vs. Massmutual Select Small
Performance |
| Timeline |
| Fa 529 Aggressive |
| Massmutual Select Small |
Fa 529 and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fa 529 and Massmutual Select
The main advantage of trading using opposite Fa 529 and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fa 529 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.| Fa 529 vs. Ab Global Risk | Fa 529 vs. Jhancock Global Equity | Fa 529 vs. Siit Global Managed | Fa 529 vs. Qs Global Equity |
| Massmutual Select vs. Ab Global Risk | Massmutual Select vs. T Rowe Price | Massmutual Select vs. Fa 529 Aggressive | Massmutual Select vs. Intal High Relative |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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