Correlation Between Massmutual Select and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Eaton Vance 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 Eaton Vance 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 Eaton Vance Floating Rate, you can compare the effects of market volatilities on Massmutual Select and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Eaton Vance.
Diversification Opportunities for Massmutual Select and Eaton Vance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and Eaton is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Massmutual Select i.e., Massmutual Select and Eaton Vance go up and down completely randomly.
Pair Corralation between Massmutual Select and Eaton Vance
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 15.46 times more return on investment than Eaton Vance. However, Massmutual Select is 15.46 times more volatile than Eaton Vance Floating Rate. It trades about 0.34 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.18 per unit of risk. If you would invest 1,048 in Massmutual Select Diversified on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Massmutual Select Diversified or generate 7.16% 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. Eaton Vance Floating Rate
Performance |
| Timeline |
| Massmutual Select |
| Eaton Vance Floating |
Massmutual Select and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Eaton Vance
The main advantage of trading using opposite Massmutual Select and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Massmutual Select vs. Dodge Cox Stock | Massmutual Select vs. American Funds American | Massmutual Select vs. American Funds American | Massmutual Select vs. American Mutual Fund |
| Eaton Vance vs. Ep Emerging Markets | Eaton Vance vs. Massmutual Select Diversified | Eaton Vance vs. Oklahoma College Savings | Eaton Vance vs. Jpmorgan Emerging Markets |
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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