Correlation Between Massmutual Select and Smead International
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Smead International 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 Smead International 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 Smead International Value, you can compare the effects of market volatilities on Massmutual Select and Smead International 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 Smead International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Smead International.
Diversification Opportunities for Massmutual Select and Smead International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Smead is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Smead International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smead International Value 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 Smead International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smead International Value has no effect on the direction of Massmutual Select i.e., Massmutual Select and Smead International go up and down completely randomly.
Pair Corralation between Massmutual Select and Smead International
Assuming the 90 days horizon Massmutual Select Diversified is expected to under-perform the Smead International. In addition to that, Massmutual Select is 1.59 times more volatile than Smead International Value. It trades about 0.0 of its total potential returns per unit of risk. Smead International Value is currently generating about 0.04 per unit of volatility. If you would invest 4,863 in Smead International Value on September 12, 2024 and sell it today you would earn a total of 388.00 from holding Smead International Value or generate 7.98% 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. Smead International Value
Performance |
| Timeline |
| Massmutual Select |
| Smead International Value |
Massmutual Select and Smead International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Smead International
The main advantage of trading using opposite Massmutual Select and Smead International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Smead International 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 Smead International will offset losses from the drop in Smead International'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 |
| Smead International vs. Transamerica Emerging Markets | Smead International vs. Investec Emerging Markets | Smead International vs. Vy Jpmorgan Emerging | Smead International vs. Pnc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |