Correlation Between M3sixty Capital and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both M3sixty Capital 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 M3sixty Capital and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M3sixty Capital Small and Massmutual Select Small, you can compare the effects of market volatilities on M3sixty Capital 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 M3sixty Capital with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of M3sixty Capital and Massmutual Select.
Diversification Opportunities for M3sixty Capital and Massmutual Select
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between M3Sixty and MASSMUTUAL is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding M3sixty Capital Small and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and M3sixty Capital 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 M3sixty Capital Small 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 Small has no effect on the direction of M3sixty Capital i.e., M3sixty Capital and Massmutual Select go up and down completely randomly.
Pair Corralation between M3sixty Capital and Massmutual Select
Assuming the 90 days horizon M3sixty Capital Small is expected to generate 1.12 times more return on investment than Massmutual Select. However, M3sixty Capital is 1.12 times more volatile than Massmutual Select Small. It trades about 0.28 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.25 per unit of risk. If you would invest 1,137 in M3sixty Capital Small on August 28, 2024 and sell it today you would earn a total of 114.00 from holding M3sixty Capital Small or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
M3sixty Capital Small vs. Massmutual Select Small
Performance |
| Timeline |
| M3sixty Capital Small |
| Massmutual Select Small |
M3sixty Capital and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M3sixty Capital and Massmutual Select
The main advantage of trading using opposite M3sixty Capital and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M3sixty Capital 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.| M3sixty Capital vs. Six Circles Managed | M3sixty Capital vs. Vanguard Sp Small Cap | M3sixty Capital vs. Fidelity Contrafund | M3sixty Capital vs. Utilities Portfolio Utilities |
| Massmutual Select vs. Allianzgi Vertible Fund | Massmutual Select vs. Miller Vertible Bond | Massmutual Select vs. Rationalpier 88 Convertible | Massmutual Select vs. Columbia Vertible Securities |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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