Correlation Between Massmutual Select and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Dodge Cox 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 Select and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Diversified and Dodge Cox Stock, you can compare the effects of market volatilities on Massmutual Select and Dodge Cox 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 Select with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Dodge Cox.
Diversification Opportunities for Massmutual Select and Dodge Cox
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Dodge is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Dodge Cox Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Cox Stock and Massmutual Select 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 Select Diversified are associated (or correlated) with Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge Cox Stock has no effect on the direction of Massmutual Select i.e., Massmutual Select and Dodge Cox go up and down completely randomly.
Pair Corralation between Massmutual Select and Dodge Cox
Assuming the 90 days horizon Massmutual Select is expected to generate 6.95 times less return on investment than Dodge Cox. In addition to that, Massmutual Select is 1.65 times more volatile than Dodge Cox Stock. It trades about 0.01 of its total potential returns per unit of risk. Dodge Cox Stock is currently generating about 0.09 per unit of volatility. If you would invest 21,299 in Dodge Cox Stock on September 1, 2024 and sell it today you would earn a total of 7,436 from holding Dodge Cox Stock or generate 34.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Dodge Cox Stock
Performance |
| Timeline |
| Massmutual Select |
| Dodge Cox Stock |
Massmutual Select and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Dodge Cox
The main advantage of trading using opposite Massmutual Select and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.| Massmutual Select vs. Columbia Global Technology | Massmutual Select vs. Icon Information Technology | Massmutual Select vs. Global Technology Portfolio | Massmutual Select vs. Biotechnology Fund Class |
| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Cox Emerging | Dodge Cox vs. Dodge Balanced 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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