Correlation Between Massmutual Select and Federated Fund
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Federated Fund 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 Federated Fund 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 Federated Fund For, you can compare the effects of market volatilities on Massmutual Select and Federated Fund 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 Federated Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Federated Fund.
Diversification Opportunities for Massmutual Select and Federated Fund
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MASSMUTUAL and Federated is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Federated Fund For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Fund For 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 Federated Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Fund For has no effect on the direction of Massmutual Select i.e., Massmutual Select and Federated Fund go up and down completely randomly.
Pair Corralation between Massmutual Select and Federated Fund
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 2.76 times more return on investment than Federated Fund. However, Massmutual Select is 2.76 times more volatile than Federated Fund For. It trades about 0.3 of its potential returns per unit of risk. Federated Fund For is currently generating about 0.13 per unit of risk. If you would invest 1,048 in Massmutual Select Diversified on September 4, 2024 and sell it today you would earn a total of 68.00 from holding Massmutual Select Diversified or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Federated Fund For
Performance |
| Timeline |
| Massmutual Select |
| Federated Fund For |
Massmutual Select and Federated Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Federated Fund
The main advantage of trading using opposite Massmutual Select and Federated Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Federated Fund 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 Federated Fund will offset losses from the drop in Federated Fund'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 |
| Federated Fund vs. Lord Abbett Diversified | Federated Fund vs. Pgim Conservative Retirement | Federated Fund vs. Oppenheimer International Diversified | Federated Fund vs. Adams Diversified Equity |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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