Correlation Between Massmutual Premier and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Massmutual Premier and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Mainstay Large.
Diversification Opportunities for Massmutual Premier and Mainstay Large
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Mainstay is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Mainstay Large go up and down completely randomly.
Pair Corralation between Massmutual Premier and Mainstay Large
Assuming the 90 days horizon Massmutual Premier is expected to generate 5.69 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Massmutual Premier Diversified is 3.08 times less risky than Mainstay Large. It trades about 0.17 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Mainstay Large Cap on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Mainstay Large Cap or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Mainstay Large Cap
Performance |
| Timeline |
| Massmutual Premier |
| Mainstay Large Cap |
Massmutual Premier and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Mainstay Large
The main advantage of trading using opposite Massmutual Premier and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Massmutual Premier vs. Dreyfusstandish Global Fixed | Massmutual Premier vs. Nationwide Global Equity | Massmutual Premier vs. Legg Mason Global | Massmutual Premier vs. Barings Global Floating |
| Mainstay Large vs. Goldman Sachs Clean | Mainstay Large vs. International Investors Gold | Mainstay Large vs. Franklin Gold Precious | Mainstay Large vs. James Balanced Golden |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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