Correlation Between Massmutual Select and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Oppenheimer Global 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 Oppenheimer Global 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 Oppenheimer Global Gr, you can compare the effects of market volatilities on Massmutual Select and Oppenheimer Global 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 Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Oppenheimer Global.
Diversification Opportunities for Massmutual Select and Oppenheimer Global
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and Oppenheimer is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Oppenheimer Global Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Massmutual Select i.e., Massmutual Select and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Massmutual Select and Oppenheimer Global
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 1.06 times more return on investment than Oppenheimer Global. However, Massmutual Select is 1.06 times more volatile than Oppenheimer Global Gr. It trades about 0.18 of its potential returns per unit of risk. Oppenheimer Global Gr is currently generating about -0.07 per unit of risk. If you would invest 1,049 in Massmutual Select Diversified on August 29, 2024 and sell it today you would earn a total of 71.00 from holding Massmutual Select Diversified or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Oppenheimer Global Gr
Performance |
| Timeline |
| Massmutual Select |
| Oppenheimer Global |
Massmutual Select and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Oppenheimer Global
The main advantage of trading using opposite Massmutual Select and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Oppenheimer Global 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 Oppenheimer Global will offset losses from the drop in Oppenheimer Global's long position.| Massmutual Select vs. Dodge Cox Stock | Massmutual Select vs. American Mutual Fund | Massmutual Select vs. American Funds American | Massmutual Select vs. American Funds American |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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