Correlation Between Issachar Fund and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Issachar Fund 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 Issachar Fund and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Massmutual Select Overseas, you can compare the effects of market volatilities on Issachar Fund 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 Issachar Fund with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Massmutual Select.
Diversification Opportunities for Issachar Fund and Massmutual Select
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Issachar and MASSMUTUAL is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Massmutual Select Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Issachar Fund 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 Issachar Fund Class 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 Issachar Fund i.e., Issachar Fund and Massmutual Select go up and down completely randomly.
Pair Corralation between Issachar Fund and Massmutual Select
Assuming the 90 days horizon Issachar Fund is expected to generate 2.89 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Issachar Fund Class is 1.2 times less risky than Massmutual Select. It trades about 0.02 of its potential returns per unit of risk. Massmutual Select Overseas is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 753.00 in Massmutual Select Overseas on September 3, 2024 and sell it today you would earn a total of 137.00 from holding Massmutual Select Overseas or generate 18.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Massmutual Select Overseas
Performance |
| Timeline |
| Issachar Fund Class |
| Massmutual Select |
Issachar Fund and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Massmutual Select
The main advantage of trading using opposite Issachar Fund and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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.The idea behind Issachar Fund Class and Massmutual Select Overseas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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