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
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Rmb is -0.26. 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 is expected to generate 2.73 times less return on investment than Rmb Fund. But when comparing it to its historical volatility, Massmutual Premier Diversified is 2.03 times less risky than Rmb Fund. It trades about 0.06 of its potential returns per unit of risk. Rmb Fund I is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,151 in Rmb Fund I on August 26, 2024 and sell it today you would earn a total of 625.00 from holding Rmb Fund I or generate 19.83% return on investment 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. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap |
| Rmb Fund vs. Massmutual Premier Diversified | Rmb Fund vs. Lord Abbett Diversified | Rmb Fund vs. Pioneer Diversified High | Rmb Fund vs. Conservative Balanced Allocation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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