Correlation Between Massmutual Select and John Hancock
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and John Hancock 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 John Hancock 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 John Hancock Enduring, you can compare the effects of market volatilities on Massmutual Select and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and John Hancock.
Diversification Opportunities for Massmutual Select and John Hancock
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and John is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Enduring has no effect on the direction of Massmutual Select i.e., Massmutual Select and John Hancock go up and down completely randomly.
Pair Corralation between Massmutual Select and John Hancock
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 1.58 times more return on investment than John Hancock. However, Massmutual Select is 1.58 times more volatile than John Hancock Enduring. It trades about 0.3 of its potential returns per unit of risk. John Hancock Enduring is currently generating about 0.21 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. John Hancock Enduring
Performance |
| Timeline |
| Massmutual Select |
| John Hancock Enduring |
Massmutual Select and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and John Hancock
The main advantage of trading using opposite Massmutual Select and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock'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 |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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