Correlation Between Massmutual Select and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Franklin Adjustable 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 Franklin Adjustable 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 Franklin Adjustable Government, you can compare the effects of market volatilities on Massmutual Select and Franklin Adjustable 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 Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Franklin Adjustable.
Diversification Opportunities for Massmutual Select and Franklin Adjustable
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Franklin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Blue and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable 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 Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Massmutual Select i.e., Massmutual Select and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Massmutual Select and Franklin Adjustable
Assuming the 90 days horizon Massmutual Select Blue is expected to generate 9.2 times more return on investment than Franklin Adjustable. However, Massmutual Select is 9.2 times more volatile than Franklin Adjustable Government. It trades about 0.19 of its potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.1 per unit of risk. If you would invest 1,872 in Massmutual Select Blue on August 29, 2024 and sell it today you would earn a total of 87.00 from holding Massmutual Select Blue or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Massmutual Select Blue vs. Franklin Adjustable Government
Performance |
| Timeline |
| Massmutual Select Blue |
| Franklin Adjustable |
Massmutual Select and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Franklin Adjustable
The main advantage of trading using opposite Massmutual Select and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Franklin Adjustable 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 Franklin Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Massmutual Select vs. Great West Loomis Sayles | Massmutual Select vs. Fpa Queens Road | Massmutual Select vs. Ultramid Cap Profund Ultramid Cap | Massmutual Select vs. Boston Partners Small |
| Franklin Adjustable vs. Vanguard Short Term Tax Exempt | Franklin Adjustable vs. HUMANA INC | Franklin Adjustable vs. Aquagold International | Franklin Adjustable vs. Barloworld Ltd ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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