Correlation Between Massmutual Select and Ab Value
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Ab Value 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 Ab Value 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 Ab Value Fund, you can compare the effects of market volatilities on Massmutual Select and Ab Value 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 Ab Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Ab Value.
Diversification Opportunities for Massmutual Select and Ab Value
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and ABVCX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Ab Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Value Fund 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 Ab Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Value Fund has no effect on the direction of Massmutual Select i.e., Massmutual Select and Ab Value go up and down completely randomly.
Pair Corralation between Massmutual Select and Ab Value
Assuming the 90 days horizon Massmutual Select Diversified is expected to under-perform the Ab Value. In addition to that, Massmutual Select is 1.01 times more volatile than Ab Value Fund. It trades about -0.09 of its total potential returns per unit of risk. Ab Value Fund is currently generating about -0.02 per unit of volatility. If you would invest 2,012 in Ab Value Fund on September 13, 2024 and sell it today you would lose (5.00) from holding Ab Value Fund or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Ab Value Fund
Performance |
| Timeline |
| Massmutual Select |
| Ab Value Fund |
Massmutual Select and Ab Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Ab Value
The main advantage of trading using opposite Massmutual Select and Ab Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Ab Value 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 Ab Value will offset losses from the drop in Ab Value's long position.| Massmutual Select vs. Lsv Small Cap | Massmutual Select vs. Palm Valley Capital | Massmutual Select vs. Boston Partners Small | Massmutual Select vs. Mutual Of America |
| Ab Value vs. Franklin Adjustable Government | Ab Value vs. Us Government Securities | Ab Value vs. Lord Abbett Government | Ab Value vs. Dunham Porategovernment Bond |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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