Correlation Between Icon Financial and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Icon Financial 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 Icon Financial and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Massmutual Select T, you can compare the effects of market volatilities on Icon Financial 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 Icon Financial with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Massmutual Select.
Diversification Opportunities for Icon Financial and Massmutual Select
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icon and Massmutual is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Icon Financial 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 Icon Financial Fund 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 Icon Financial i.e., Icon Financial and Massmutual Select go up and down completely randomly.
Pair Corralation between Icon Financial and Massmutual Select
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Massmutual Select. In addition to that, Icon Financial is 9.33 times more volatile than Massmutual Select T. It trades about -0.07 of its total potential returns per unit of risk. Massmutual Select T is currently generating about 0.31 per unit of volatility. If you would invest 1,485 in Massmutual Select T on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Massmutual Select T or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icon Financial Fund vs. Massmutual Select T
Performance |
| Timeline |
| Icon Financial |
| Massmutual Select |
Icon Financial and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Massmutual Select
The main advantage of trading using opposite Icon Financial and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial 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.| Icon Financial vs. Nuveen Minnesota Municipal | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Blrc Sgy Mnp | Icon Financial vs. T Rowe Price |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |