Correlation Between Massmutual Premier and Strategic Income
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Strategic Income 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 Premier and Strategic Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Strategic Income Opportunities, you can compare the effects of market volatilities on Massmutual Premier and Strategic Income 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 Premier with a short position of Strategic Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Strategic Income.
Diversification Opportunities for Massmutual Premier and Strategic Income
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Strategic is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Strategic Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Income Opp and Massmutual Premier 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 Premier Diversified are associated (or correlated) with Strategic Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Income Opp has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Strategic Income go up and down completely randomly.
Pair Corralation between Massmutual Premier and Strategic Income
Assuming the 90 days horizon Massmutual Premier Diversified is expected to generate 2.07 times more return on investment than Strategic Income. However, Massmutual Premier is 2.07 times more volatile than Strategic Income Opportunities. It trades about 0.24 of its potential returns per unit of risk. Strategic Income Opportunities is currently generating about 0.36 per unit of risk. If you would invest 815.00 in Massmutual Premier Diversified on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Massmutual Premier Diversified or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Strategic Income Opportunities
Performance |
| Timeline |
| Massmutual Premier |
| Strategic Income Opp |
Massmutual Premier and Strategic Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Strategic Income
The main advantage of trading using opposite Massmutual Premier and Strategic Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Strategic Income 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 Strategic Income will offset losses from the drop in Strategic Income's long position.| Massmutual Premier vs. Rationalpier 88 Convertible | Massmutual Premier vs. Lord Abbett Convertible | Massmutual Premier vs. Putnam Convertible Incm Gwth | Massmutual Premier vs. Allianzgi Convertible Income |
| Strategic Income vs. Fidelity Advisor Gold | Strategic Income vs. Goldman Sachs Clean | Strategic Income vs. Precious Metals And | Strategic Income vs. Vy Goldman Sachs |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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