Correlation Between Ftfa Franklin and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin 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 Ftfa Franklin and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Massmutual Select T, you can compare the effects of market volatilities on Ftfa Franklin 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 Ftfa Franklin with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Massmutual Select.
Diversification Opportunities for Ftfa Franklin and Massmutual Select
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ftfa and Massmutual is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Ftfa Franklin 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 Ftfa Franklin Templeton Growth 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 has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Massmutual Select go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Massmutual Select
Assuming the 90 days horizon Ftfa Franklin is expected to generate 1.0 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.11 times less risky than Massmutual Select. It trades about 0.34 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,868 in Massmutual Select T on September 5, 2024 and sell it today you would earn a total of 73.00 from holding Massmutual Select T or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Massmutual Select T
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Massmutual Select |
Ftfa Franklin and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Massmutual Select
The main advantage of trading using opposite Ftfa Franklin and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin 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.| Ftfa Franklin vs. Quantitative Longshort Equity | Ftfa Franklin vs. Jhancock Short Duration | Ftfa Franklin vs. Ab Select Longshort | Ftfa Franklin vs. Aqr Long Short Equity |
| Massmutual Select vs. Smallcap Growth Fund | Massmutual Select vs. Nationwide Growth Fund | Massmutual Select vs. Ftfa Franklin Templeton Growth | Massmutual Select vs. Qs Moderate Growth |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |