Correlation Between Massmutual Select and Energy Services
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Energy Services 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 Massmutual Select and Energy Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Blue and Energy Services Fund, you can compare the effects of market volatilities on Massmutual Select and Energy Services 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 Massmutual Select with a short position of Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Energy Services.
Diversification Opportunities for Massmutual Select and Energy Services
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Massmutual and Energy is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Blue and Energy Services Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services and Massmutual Select 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 Massmutual Select Blue are associated (or correlated) with Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of Massmutual Select i.e., Massmutual Select and Energy Services go up and down completely randomly.
Pair Corralation between Massmutual Select and Energy Services
Assuming the 90 days horizon Massmutual Select Blue is expected to generate 0.79 times more return on investment than Energy Services. However, Massmutual Select Blue is 1.26 times less risky than Energy Services. It trades about 0.0 of its potential returns per unit of risk. Energy Services Fund is currently generating about -0.1 per unit of risk. If you would invest 1,938 in Massmutual Select Blue on November 27, 2024 and sell it today you would lose (11.00) from holding Massmutual Select Blue or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Blue vs. Energy Services Fund
Performance |
| Timeline |
| Massmutual Select Blue |
| Energy Services |
Massmutual Select and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Energy Services
The main advantage of trading using opposite Massmutual Select and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| Massmutual Select vs. Icon Financial Fund | Massmutual Select vs. Rmb Mendon Financial | Massmutual Select vs. Prudential Financial Services | Massmutual Select vs. Financial Industries Fund |
| Energy Services vs. Energy Fund Investor | Energy Services vs. Basic Materials Fund | Energy Services vs. Electronics Fund Investor | Energy Services vs. Health Care 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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