Correlation Between Massmutual Premier and Sentinel Small
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Sentinel Small 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 Sentinel Small 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 Sentinel Small Pany, you can compare the effects of market volatilities on Massmutual Premier and Sentinel Small 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 Sentinel Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Sentinel Small.
Diversification Opportunities for Massmutual Premier and Sentinel Small
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Sentinel is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Sentinel Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Small Pany 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 Sentinel Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Small Pany has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Sentinel Small go up and down completely randomly.
Pair Corralation between Massmutual Premier and Sentinel Small
Assuming the 90 days horizon Massmutual Premier Diversified is expected to generate 0.32 times more return on investment than Sentinel Small. However, Massmutual Premier Diversified is 3.15 times less risky than Sentinel Small. It trades about 0.26 of its potential returns per unit of risk. Sentinel Small Pany is currently generating about -0.23 per unit of risk. If you would invest 809.00 in Massmutual Premier Diversified on November 27, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Premier Diversified or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Sentinel Small Pany
Performance |
| Timeline |
| Massmutual Premier |
| Sentinel Small Pany |
Massmutual Premier and Sentinel Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Sentinel Small
The main advantage of trading using opposite Massmutual Premier and Sentinel Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Sentinel Small 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 Sentinel Small will offset losses from the drop in Sentinel Small's long position.| Massmutual Premier vs. T Rowe Price | Massmutual Premier vs. Rational Defensive Growth | Massmutual Premier vs. Touchstone Sands Capital | Massmutual Premier vs. Templeton Growth Fund |
| Sentinel Small vs. Mid Cap Growth | Sentinel Small vs. Mid Cap Growth | Sentinel Small vs. Mid Cap Growth | Sentinel Small vs. Sentinel Small Pany |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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