Correlation Between Emerging Markets and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Emerging Markets 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 Emerging Markets and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Emerging Markets and Massmutual Select Diversified, you can compare the effects of market volatilities on Emerging Markets 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 Emerging Markets with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Massmutual Select.
Diversification Opportunities for Emerging Markets and Massmutual Select
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerging and Massmutual is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Emerging Markets 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 The Emerging Markets 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 Emerging Markets i.e., Emerging Markets and Massmutual Select go up and down completely randomly.
Pair Corralation between Emerging Markets and Massmutual Select
Assuming the 90 days horizon The Emerging Markets is expected to generate 0.62 times more return on investment than Massmutual Select. However, The Emerging Markets is 1.6 times less risky than Massmutual Select. It trades about 0.06 of its potential returns per unit of risk. Massmutual Select Diversified is currently generating about 0.01 per unit of risk. If you would invest 1,674 in The Emerging Markets on September 12, 2024 and sell it today you would earn a total of 264.00 from holding The Emerging Markets or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
The Emerging Markets vs. Massmutual Select Diversified
Performance |
| Timeline |
| Emerging Markets |
| Massmutual Select |
Emerging Markets and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Massmutual Select
The main advantage of trading using opposite Emerging Markets and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets 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.| Emerging Markets vs. Ab Global Risk | Emerging Markets vs. Jhancock Global Equity | Emerging Markets vs. Kinetics Global Fund | Emerging Markets vs. Ab Global Real |
| Massmutual Select vs. Origin Emerging Markets | Massmutual Select vs. Ashmore Emerging Markets | Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Dws Emerging Markets |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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