Correlation Between Jhancock Diversified and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified 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 Jhancock Diversified and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Massmutual Select Diversified, you can compare the effects of market volatilities on Jhancock Diversified 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 Jhancock Diversified with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Massmutual Select.
Diversification Opportunities for Jhancock Diversified and Massmutual Select
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and MASSMUTUAL is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Jhancock Diversified 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 Jhancock Diversified Macro 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 Jhancock Diversified i.e., Jhancock Diversified and Massmutual Select go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Massmutual Select
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 0.43 times more return on investment than Massmutual Select. However, Jhancock Diversified Macro is 2.32 times less risky than Massmutual Select. It trades about 0.0 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 897.00 in Jhancock Diversified Macro on September 3, 2024 and sell it today you would lose (1.00) from holding Jhancock Diversified Macro or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Massmutual Select Diversified
Performance |
| Timeline |
| Jhancock Diversified |
| Massmutual Select |
Jhancock Diversified and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Massmutual Select
The main advantage of trading using opposite Jhancock Diversified and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified 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.| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Massmutual Select vs. Dodge Cox Stock | Massmutual Select vs. American Funds American | Massmutual Select vs. American Funds American | Massmutual Select vs. American Mutual Fund |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |