Correlation Between Massmutual Select and Cutler Equity
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Cutler Equity 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 Cutler Equity 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 Cutler Equity, you can compare the effects of market volatilities on Massmutual Select and Cutler Equity 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 Cutler Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Cutler Equity.
Diversification Opportunities for Massmutual Select and Cutler Equity
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Massmutual and Cutler is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Blue and Cutler Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cutler Equity 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 Cutler Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cutler Equity has no effect on the direction of Massmutual Select i.e., Massmutual Select and Cutler Equity go up and down completely randomly.
Pair Corralation between Massmutual Select and Cutler Equity
Assuming the 90 days horizon Massmutual Select is expected to generate 1.72 times less return on investment than Cutler Equity. In addition to that, Massmutual Select is 2.44 times more volatile than Cutler Equity. It trades about 0.02 of its total potential returns per unit of risk. Cutler Equity is currently generating about 0.09 per unit of volatility. If you would invest 2,390 in Cutler Equity on September 12, 2024 and sell it today you would earn a total of 509.00 from holding Cutler Equity or generate 21.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Massmutual Select Blue vs. Cutler Equity
Performance |
| Timeline |
| Massmutual Select Blue |
| Cutler Equity |
Massmutual Select and Cutler Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Cutler Equity
The main advantage of trading using opposite Massmutual Select and Cutler Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Cutler Equity 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 Cutler Equity will offset losses from the drop in Cutler Equity's long position.| Massmutual Select vs. Cutler Equity | Massmutual Select vs. Multimedia Portfolio Multimedia | Massmutual Select vs. Calamos Global Equity | Massmutual Select vs. Rbc Global Equity |
| Cutler Equity vs. Ab Global Risk | Cutler Equity vs. Kinetics Global Fund | Cutler Equity vs. Siit Global Managed | Cutler Equity vs. Mirova Global Green |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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