Correlation Between Massmutual Select and The Hartford
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and The Hartford 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 The Hartford 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 The Hartford Small, you can compare the effects of market volatilities on Massmutual Select and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and The Hartford.
Diversification Opportunities for Massmutual Select and The Hartford
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Massmutual and THE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Blue and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Massmutual Select i.e., Massmutual Select and The Hartford go up and down completely randomly.
Pair Corralation between Massmutual Select and The Hartford
Assuming the 90 days horizon Massmutual Select is expected to generate 1.55 times less return on investment than The Hartford. But when comparing it to its historical volatility, Massmutual Select Blue is 1.37 times less risky than The Hartford. It trades about 0.19 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,902 in The Hartford Small on August 25, 2024 and sell it today you would earn a total of 206.00 from holding The Hartford Small or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Blue vs. The Hartford Small
Performance |
| Timeline |
| Massmutual Select Blue |
| Hartford Small |
Massmutual Select and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and The Hartford
The main advantage of trading using opposite Massmutual Select and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Massmutual Select vs. Vanguard Small Cap Index | Massmutual Select vs. Champlain Small | Massmutual Select vs. The Hartford Small | Massmutual Select vs. Small Cap Value |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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