Correlation Between Federated Institutional and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Federated Institutional 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 Federated Institutional and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Institutional High and Massmutual Select Mid Cap, you can compare the effects of market volatilities on Federated Institutional 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 Federated Institutional with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Institutional and Massmutual Select.
Diversification Opportunities for Federated Institutional and Massmutual Select
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Federated and MASSMUTUAL is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Federated Institutional High and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Federated Institutional 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 Federated Institutional High 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 Mid has no effect on the direction of Federated Institutional i.e., Federated Institutional and Massmutual Select go up and down completely randomly.
Pair Corralation between Federated Institutional and Massmutual Select
If you would invest 889.00 in Federated Institutional High on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Federated Institutional High or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Institutional High vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Federated Institutional |
| Massmutual Select Mid |
Federated Institutional and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Institutional and Massmutual Select
The main advantage of trading using opposite Federated Institutional and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Institutional 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.| Federated Institutional vs. Nexpoint Real Estate | Federated Institutional vs. Baron Real Estate | Federated Institutional vs. Texton Property | Federated Institutional vs. Nomura Real Estate |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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