Correlation Between James Balanced and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both James Balanced 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 James Balanced and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Massmutual Select T, you can compare the effects of market volatilities on James Balanced 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 James Balanced with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Massmutual Select.
Diversification Opportunities for James Balanced and Massmutual Select
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Massmutual is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and James Balanced 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 James Balanced Golden 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 James Balanced i.e., James Balanced and Massmutual Select go up and down completely randomly.
Pair Corralation between James Balanced and Massmutual Select
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.91 times more return on investment than Massmutual Select. However, James Balanced Golden is 1.09 times less risky than Massmutual Select. It trades about 0.1 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.08 per unit of risk. If you would invest 1,836 in James Balanced Golden on September 12, 2024 and sell it today you would earn a total of 443.00 from holding James Balanced Golden or generate 24.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
James Balanced Golden vs. Massmutual Select T
Performance |
| Timeline |
| James Balanced Golden |
| Massmutual Select |
James Balanced and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Massmutual Select
The main advantage of trading using opposite James Balanced and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced 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.| James Balanced vs. Vanguard Wellesley Income | James Balanced vs. Blackrock Multi Asset Income | James Balanced vs. The Hartford Balanced | James Balanced vs. The Hartford Balanced |
| Massmutual Select vs. Western Asset Municipal | Massmutual Select vs. Dreyfusstandish Global Fixed | Massmutual Select vs. Dws Government Money | Massmutual Select vs. T Rowe Price |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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