Correlation Between Massmutual Premier and Rmb Fund
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Rmb Fund 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 Rmb Fund 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 Rmb Fund I, you can compare the effects of market volatilities on Massmutual Premier and Rmb Fund 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 Rmb Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Rmb Fund.
Diversification Opportunities for Massmutual Premier and Rmb Fund
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Rmb is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Rmb Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rmb Fund I 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 Rmb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rmb Fund I has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Rmb Fund go up and down completely randomly.
Pair Corralation between Massmutual Premier and Rmb Fund
Assuming the 90 days horizon Massmutual Premier Diversified is expected to generate 0.23 times more return on investment than Rmb Fund. However, Massmutual Premier Diversified is 4.29 times less risky than Rmb Fund. It trades about -0.01 of its potential returns per unit of risk. Rmb Fund I is currently generating about -0.05 per unit of risk. If you would invest 806.00 in Massmutual Premier Diversified on January 14, 2025 and sell it today you would lose (3.00) from holding Massmutual Premier Diversified or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Rmb Fund I
Performance |
| Timeline |
| Massmutual Premier |
| Rmb Fund I |
Massmutual Premier and Rmb Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Rmb Fund
The main advantage of trading using opposite Massmutual Premier and Rmb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Rmb Fund 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 Rmb Fund will offset losses from the drop in Rmb Fund's long position.| Massmutual Premier vs. Us Government Securities | Massmutual Premier vs. Legg Mason Partners | Massmutual Premier vs. Us Government Securities | Massmutual Premier vs. Goldman Sachs Short |
| Rmb Fund vs. Rmb Small Cap | Rmb Fund vs. Rmb Fund A | Rmb Fund vs. Rmb Fund C | Rmb Fund vs. Rmb Mendon Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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