Correlation Between First American and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both First American 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 First American and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Funds and Massmutual Select Total, you can compare the effects of market volatilities on First American 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 First American with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Massmutual Select.
Diversification Opportunities for First American and Massmutual Select
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Massmutual is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding First American Funds 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 First American 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 First American Funds 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 First American i.e., First American and Massmutual Select go up and down completely randomly.
Pair Corralation between First American and Massmutual Select
If you would invest 839.00 in Massmutual Select Total on September 5, 2024 and sell it today you would earn a total of 7.00 from holding Massmutual Select Total or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First American Funds vs. Massmutual Select Total
Performance |
| Timeline |
| First American Funds |
| Massmutual Select Total |
First American and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Massmutual Select
The main advantage of trading using opposite First American and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American 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.| First American vs. Iaadx | First American vs. Ab Value Fund | First American vs. T Rowe Price | First American vs. Balanced Fund Investor |
| Massmutual Select vs. Aig Government Money | Massmutual Select vs. Janus Investment | Massmutual Select vs. First American Funds | Massmutual Select vs. Franklin Government Money |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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