Correlation Between Massmutual Select and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Putnam Global 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 Putnam Global 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 Putnam Global Industrials, you can compare the effects of market volatilities on Massmutual Select and Putnam Global 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Putnam Global.
Diversification Opportunities for Massmutual Select and Putnam Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Putnam is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Putnam Global Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Industrials 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Industrials has no effect on the direction of Massmutual Select i.e., Massmutual Select and Putnam Global go up and down completely randomly.
Pair Corralation between Massmutual Select and Putnam Global
Assuming the 90 days horizon Massmutual Select Diversified is expected to under-perform the Putnam Global. In addition to that, Massmutual Select is 1.02 times more volatile than Putnam Global Industrials. It trades about -0.13 of its total potential returns per unit of risk. Putnam Global Industrials is currently generating about 0.22 per unit of volatility. If you would invest 3,336 in Putnam Global Industrials on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Putnam Global Industrials or generate 2.7% 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. Putnam Global Industrials
Performance |
| Timeline |
| Massmutual Select |
| Putnam Global Industrials |
Massmutual Select and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Putnam Global
The main advantage of trading using opposite Massmutual Select and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Massmutual Select vs. Origin Emerging Markets | Massmutual Select vs. Ashmore Emerging Markets | Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Dws Emerging Markets |
| Putnam Global vs. Putnam Multi Cap Growth | Putnam Global vs. Putnam Multi Cap Growth | Putnam Global vs. Putnam Sustainable Future | Putnam Global vs. Putnam Equity 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |