Correlation Between James Balanced and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both James Balanced and Massmutual Retiresmart 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 Retiresmart 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 Retiresmart 2030, you can compare the effects of market volatilities on James Balanced and Massmutual Retiresmart 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 Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Massmutual Retiresmart.
Diversification Opportunities for James Balanced and Massmutual Retiresmart
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between James and Massmutual is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Massmutual Retiresmart 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of James Balanced i.e., James Balanced and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between James Balanced and Massmutual Retiresmart
Assuming the 90 days horizon James Balanced is expected to generate 1.16 times less return on investment than Massmutual Retiresmart. But when comparing it to its historical volatility, James Balanced Golden is 1.04 times less risky than Massmutual Retiresmart. It trades about 0.11 of its potential returns per unit of risk. Massmutual Retiresmart 2030 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 999.00 in Massmutual Retiresmart 2030 on September 12, 2024 and sell it today you would earn a total of 208.00 from holding Massmutual Retiresmart 2030 or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
James Balanced Golden vs. Massmutual Retiresmart 2030
Performance |
| Timeline |
| James Balanced Golden |
| Massmutual Retiresmart |
James Balanced and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Massmutual Retiresmart
The main advantage of trading using opposite James Balanced and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart'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 Retiresmart vs. Great West Goldman Sachs | Massmutual Retiresmart vs. Gamco Global Gold | Massmutual Retiresmart vs. Sprott Gold Equity | Massmutual Retiresmart vs. James Balanced Golden |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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