Correlation Between Massmutual Premier and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Lazard Us 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 Lazard Us 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 Lazard Corporate Income, you can compare the effects of market volatilities on Massmutual Premier and Lazard Us 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 Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Lazard Us.
Diversification Opportunities for Massmutual Premier and Lazard Us
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Lazard is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Lazard Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Corporate Income 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 Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Corporate Income has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Lazard Us go up and down completely randomly.
Pair Corralation between Massmutual Premier and Lazard Us
Assuming the 90 days horizon Massmutual Premier Diversified is expected to generate 1.73 times more return on investment than Lazard Us. However, Massmutual Premier is 1.73 times more volatile than Lazard Corporate Income. It trades about 0.32 of its potential returns per unit of risk. Lazard Corporate Income is currently generating about 0.22 per unit of risk. If you would invest 809.00 in Massmutual Premier Diversified on November 29, 2024 and sell it today you would earn a total of 18.00 from holding Massmutual Premier Diversified or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Lazard Corporate Income
Performance |
| Timeline |
| Massmutual Premier |
| Lazard Corporate Income |
Massmutual Premier and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Lazard Us
The main advantage of trading using opposite Massmutual Premier and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Lazard Us 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 Lazard Us will offset losses from the drop in Lazard Us' long position.| Massmutual Premier vs. Prudential Core Conservative | Massmutual Premier vs. Jhancock Diversified Macro | Massmutual Premier vs. Global Diversified Income | Massmutual Premier vs. Lord Abbett Diversified |
| Lazard Us vs. Guidemark Large Cap | Lazard Us vs. Lord Abbett Affiliated | Lazard Us vs. Old Westbury Large | Lazard Us vs. American Mutual Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |