Correlation Between Massmutual Select and Miller Opportunity
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Miller Opportunity 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 Miller Opportunity 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 Miller Opportunity Trust, you can compare the effects of market volatilities on Massmutual Select and Miller Opportunity 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 Miller Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Miller Opportunity.
Diversification Opportunities for Massmutual Select and Miller Opportunity
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Miller is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Miller Opportunity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Opportunity Trust 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 Miller Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Opportunity Trust has no effect on the direction of Massmutual Select i.e., Massmutual Select and Miller Opportunity go up and down completely randomly.
Pair Corralation between Massmutual Select and Miller Opportunity
Assuming the 90 days horizon Massmutual Select is expected to generate 12.64 times less return on investment than Miller Opportunity. But when comparing it to its historical volatility, Massmutual Select Diversified is 1.14 times less risky than Miller Opportunity. It trades about 0.01 of its potential returns per unit of risk. Miller Opportunity Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,385 in Miller Opportunity Trust on September 13, 2024 and sell it today you would earn a total of 2,043 from holding Miller Opportunity Trust or generate 85.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Miller Opportunity Trust
Performance |
| Timeline |
| Massmutual Select |
| Miller Opportunity Trust |
Massmutual Select and Miller Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Miller Opportunity
The main advantage of trading using opposite Massmutual Select and Miller Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Miller Opportunity 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 Miller Opportunity will offset losses from the drop in Miller Opportunity's long position.| Massmutual Select vs. Lsv Small Cap | Massmutual Select vs. Palm Valley Capital | Massmutual Select vs. Boston Partners Small | Massmutual Select vs. Mutual Of America |
| Miller Opportunity vs. Miller Income Fund | Miller Opportunity vs. Miller Income Fund | Miller Opportunity vs. Miller Income Fund | Miller Opportunity vs. Miller Income Fund |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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