Correlation Between Massmutual Select and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Lord Abbett 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 Lord Abbett 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 Lord Abbett Growth, you can compare the effects of market volatilities on Massmutual Select and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Lord Abbett.
Diversification Opportunities for Massmutual Select and Lord Abbett
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and Lord is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Lord Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Growth 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Growth has no effect on the direction of Massmutual Select i.e., Massmutual Select and Lord Abbett go up and down completely randomly.
Pair Corralation between Massmutual Select and Lord Abbett
Assuming the 90 days horizon Massmutual Select is expected to generate 2.12 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Massmutual Select Diversified is 1.4 times less risky than Lord Abbett. It trades about 0.3 of its potential returns per unit of risk. Lord Abbett Growth is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 2,545 in Lord Abbett Growth on September 4, 2024 and sell it today you would earn a total of 362.00 from holding Lord Abbett Growth or generate 14.22% 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. Lord Abbett Growth
Performance |
| Timeline |
| Massmutual Select |
| Lord Abbett Growth |
Massmutual Select and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Lord Abbett
The main advantage of trading using opposite Massmutual Select and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett'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 |
| Lord Abbett vs. Jhancock Diversified Macro | Lord Abbett vs. Evaluator Conservative Rms | Lord Abbett vs. Massmutual Select Diversified | Lord Abbett vs. Harbor Diversified International |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |