Correlation Between Massmutual Select and Franklin Oregon
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Franklin Oregon 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 Franklin Oregon 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 Franklin Oregon Tax Free, you can compare the effects of market volatilities on Massmutual Select and Franklin Oregon 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 Franklin Oregon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Franklin Oregon.
Diversification Opportunities for Massmutual Select and Franklin Oregon
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Massmutual and Franklin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Franklin Oregon Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Oregon Tax 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 Franklin Oregon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Oregon Tax has no effect on the direction of Massmutual Select i.e., Massmutual Select and Franklin Oregon go up and down completely randomly.
Pair Corralation between Massmutual Select and Franklin Oregon
Assuming the 90 days horizon Massmutual Select is expected to generate 1.16 times less return on investment than Franklin Oregon. In addition to that, Massmutual Select is 5.37 times more volatile than Franklin Oregon Tax Free. It trades about 0.01 of its total potential returns per unit of risk. Franklin Oregon Tax Free is currently generating about 0.06 per unit of volatility. If you would invest 1,005 in Franklin Oregon Tax Free on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Franklin Oregon Tax Free or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Franklin Oregon Tax Free
Performance |
| Timeline |
| Massmutual Select |
| Franklin Oregon Tax |
Massmutual Select and Franklin Oregon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Franklin Oregon
The main advantage of trading using opposite Massmutual Select and Franklin Oregon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Franklin Oregon 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 Franklin Oregon will offset losses from the drop in Franklin Oregon's long position.| Massmutual Select vs. Origin Emerging Markets | Massmutual Select vs. Ashmore Emerging Markets | Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Dws Emerging Markets |
| Franklin Oregon vs. New Jersey Tax Free | Franklin Oregon vs. Maryland Tax Free Bond | Franklin Oregon vs. New York Tax Free | Franklin Oregon vs. Maryland Short Term Tax Free |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets |