Correlation Between Massmutual Select and Oppenheimer Target
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Oppenheimer Target 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 Oppenheimer Target 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 Oppenheimer Target, you can compare the effects of market volatilities on Massmutual Select and Oppenheimer Target 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 Oppenheimer Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Oppenheimer Target.
Diversification Opportunities for Massmutual Select and Oppenheimer Target
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MASSMUTUAL and Oppenheimer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Oppenheimer Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Target 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 Oppenheimer Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Target has no effect on the direction of Massmutual Select i.e., Massmutual Select and Oppenheimer Target go up and down completely randomly.
Pair Corralation between Massmutual Select and Oppenheimer Target
Assuming the 90 days horizon Massmutual Select is expected to generate 1.01 times less return on investment than Oppenheimer Target. In addition to that, Massmutual Select is 1.03 times more volatile than Oppenheimer Target. It trades about 0.3 of its total potential returns per unit of risk. Oppenheimer Target is currently generating about 0.31 per unit of volatility. If you would invest 4,210 in Oppenheimer Target on September 4, 2024 and sell it today you would earn a total of 276.00 from holding Oppenheimer Target or generate 6.56% 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. Oppenheimer Target
Performance |
| Timeline |
| Massmutual Select |
| Oppenheimer Target |
Massmutual Select and Oppenheimer Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Oppenheimer Target
The main advantage of trading using opposite Massmutual Select and Oppenheimer Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Oppenheimer Target 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 Oppenheimer Target will offset losses from the drop in Oppenheimer Target'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 |
| Oppenheimer Target vs. Ab Bond Inflation | Oppenheimer Target vs. Gmo High Yield | Oppenheimer Target vs. Bbh Intermediate Municipal | Oppenheimer Target vs. Artisan High Income |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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