Correlation Between Massmutual Select and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mainstay New 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 Mainstay New 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 Mainstay New York, you can compare the effects of market volatilities on Massmutual Select and Mainstay New 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 Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mainstay New.
Diversification Opportunities for Massmutual Select and Mainstay New
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MASSMUTUAL and Mainstay is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mainstay New go up and down completely randomly.
Pair Corralation between Massmutual Select and Mainstay New
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 2.78 times more return on investment than Mainstay New. However, Massmutual Select is 2.78 times more volatile than Mainstay New York. It trades about 0.24 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.19 per unit of risk. If you would invest 1,048 in Massmutual Select Diversified on September 5, 2024 and sell it today you would earn a total of 57.00 from holding Massmutual Select Diversified or generate 5.44% 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. Mainstay New York
Performance |
| Timeline |
| Massmutual Select |
| Mainstay New York |
Massmutual Select and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mainstay New
The main advantage of trading using opposite Massmutual Select and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mainstay New 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 Mainstay New will offset losses from the drop in Mainstay New'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 |
| Mainstay New vs. Massmutual Select Diversified | Mainstay New vs. American Funds Conservative | Mainstay New vs. Aqr Diversified Arbitrage | Mainstay New vs. Lord Abbett Diversified |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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