Correlation Between International Investors and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both International Investors 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 International Investors and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Investors Gold and Massmutual Select Mid Cap, you can compare the effects of market volatilities on International Investors 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 International Investors with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and Massmutual Select.
Diversification Opportunities for International Investors and Massmutual Select
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and Massmutual is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and International Investors 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 International Investors Gold 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 Mid has no effect on the direction of International Investors i.e., International Investors and Massmutual Select go up and down completely randomly.
Pair Corralation between International Investors and Massmutual Select
Assuming the 90 days horizon International Investors Gold is expected to generate 2.44 times more return on investment than Massmutual Select. However, International Investors is 2.44 times more volatile than Massmutual Select Mid Cap. It trades about 0.07 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.1 per unit of risk. If you would invest 974.00 in International Investors Gold on August 25, 2024 and sell it today you would earn a total of 255.00 from holding International Investors Gold or generate 26.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Investors Gold vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| International Investors |
| Massmutual Select Mid |
International Investors and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Investors and Massmutual Select
The main advantage of trading using opposite International Investors and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors 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.| International Investors vs. Ab Value Fund | International Investors vs. Multimedia Portfolio Multimedia | International Investors vs. Qs Large Cap | International Investors vs. Rational Special Situations |
| Massmutual Select vs. International Investors Gold | Massmutual Select vs. Global Gold Fund | Massmutual Select vs. Short Precious Metals | Massmutual Select vs. Oppenheimer Gold Special |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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