Correlation Between Massmutual Select and North Square
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and North Square 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 North Square 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 North Square Investments, you can compare the effects of market volatilities on Massmutual Select and North Square 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 North Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and North Square.
Diversification Opportunities for Massmutual Select and North Square
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MASSMUTUAL and North is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and North Square Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Investments 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 North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Investments has no effect on the direction of Massmutual Select i.e., Massmutual Select and North Square go up and down completely randomly.
Pair Corralation between Massmutual Select and North Square
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 1.65 times more return on investment than North Square. However, Massmutual Select is 1.65 times more volatile than North Square Investments. It trades about 0.27 of its potential returns per unit of risk. North Square Investments is currently generating about 0.02 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 63.00 from holding Massmutual Select Diversified or generate 6.01% 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. North Square Investments
Performance |
| Timeline |
| Massmutual Select |
| North Square Investments |
Massmutual Select and North Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and North Square
The main advantage of trading using opposite Massmutual Select and North Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, North Square 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 North Square will offset losses from the drop in North Square'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 |
| North Square vs. Global Gold Fund | North Square vs. International Investors Gold | North Square vs. Oppenheimer Gold Special | North Square vs. Europac Gold 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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