Correlation Between Massmutual Select and At Equity
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and At Equity 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 At Equity 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 At Equity Income, you can compare the effects of market volatilities on Massmutual Select and At Equity 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 At Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and At Equity.
Diversification Opportunities for Massmutual Select and At Equity
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and AWYIX is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and At Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Equity Income 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 At Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Equity Income has no effect on the direction of Massmutual Select i.e., Massmutual Select and At Equity go up and down completely randomly.
Pair Corralation between Massmutual Select and At Equity
Assuming the 90 days horizon Massmutual Select Diversified is expected to under-perform the At Equity. In addition to that, Massmutual Select is 2.88 times more volatile than At Equity Income. It trades about -0.03 of its total potential returns per unit of risk. At Equity Income is currently generating about 0.17 per unit of volatility. If you would invest 5,717 in At Equity Income on September 5, 2024 and sell it today you would earn a total of 904.00 from holding At Equity Income or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. At Equity Income
Performance |
| Timeline |
| Massmutual Select |
| At Equity Income |
Massmutual Select and At Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and At Equity
The main advantage of trading using opposite Massmutual Select and At Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, At Equity 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 At Equity will offset losses from the drop in At Equity's long position.| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
| At Equity vs. T Rowe Price | At Equity vs. Legg Mason Partners | At Equity vs. Blrc Sgy Mnp | At Equity vs. Ab Bond Inflation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |