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
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Massmutual and Putnam is 0.85. 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 generate 0.69 times more return on investment than Putnam Global. However, Massmutual Select Diversified is 1.45 times less risky than Putnam Global. It trades about 0.09 of its potential returns per unit of risk. Putnam Global Industrials is currently generating about -0.03 per unit of risk. If you would invest 1,004 in Massmutual Select Diversified on December 3, 2024 and sell it today you would earn a total of 10.00 from holding Massmutual Select Diversified or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| 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. Jhvit Core Bond | Massmutual Select vs. Ab Bond Inflation | Massmutual Select vs. Goldman Sachs Bond | Massmutual Select vs. Flexible Bond Portfolio |
| Putnam Global vs. Transam Short Term Bond | Putnam Global vs. Alpine Ultra Short | Putnam Global vs. Barings Active Short | Putnam Global vs. Ashmore Emerging Markets |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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