Correlation Between Massmutual Select and Oakmark Bond
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Oakmark Bond 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 Oakmark Bond 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 Oakmark Bond, you can compare the effects of market volatilities on Massmutual Select and Oakmark Bond 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 Oakmark Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Oakmark Bond.
Diversification Opportunities for Massmutual Select and Oakmark Bond
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MASSMUTUAL and Oakmark is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Oakmark Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Bond 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 Oakmark Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Bond has no effect on the direction of Massmutual Select i.e., Massmutual Select and Oakmark Bond go up and down completely randomly.
Pair Corralation between Massmutual Select and Oakmark Bond
Assuming the 90 days horizon Massmutual Select Diversified is expected to generate 2.92 times more return on investment than Oakmark Bond. However, Massmutual Select is 2.92 times more volatile than Oakmark Bond. It trades about 0.34 of its potential returns per unit of risk. Oakmark Bond is currently generating about 0.13 per unit of risk. If you would invest 1,048 in Massmutual Select Diversified on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Massmutual Select Diversified or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Oakmark Bond
Performance |
| Timeline |
| Massmutual Select |
| Oakmark Bond |
Massmutual Select and Oakmark Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Oakmark Bond
The main advantage of trading using opposite Massmutual Select and Oakmark Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Oakmark Bond 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 Oakmark Bond will offset losses from the drop in Oakmark Bond's long position.| Massmutual Select vs. Dodge Cox Stock | Massmutual Select vs. American Funds American | Massmutual Select vs. American Funds American | Massmutual Select vs. American Mutual Fund |
| Oakmark Bond vs. Massmutual Select Diversified | Oakmark Bond vs. Jhancock Diversified Macro | Oakmark Bond vs. Blackrock Conservative Prprdptfinstttnl | Oakmark Bond vs. American Funds Conservative |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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