Correlation Between Massmutual Select and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Highland Longshort 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 Highland Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Mid and Highland Longshort Healthcare, you can compare the effects of market volatilities on Massmutual Select and Highland Longshort 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 Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Highland Longshort.
Diversification Opportunities for Massmutual Select and Highland Longshort
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and Highland is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Mid and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort 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 Mid are associated (or correlated) with Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Massmutual Select i.e., Massmutual Select and Highland Longshort go up and down completely randomly.
Pair Corralation between Massmutual Select and Highland Longshort
Assuming the 90 days horizon Massmutual Select Mid is expected to under-perform the Highland Longshort. In addition to that, Massmutual Select is 15.85 times more volatile than Highland Longshort Healthcare. It trades about -0.11 of its total potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.03 per unit of volatility. If you would invest 1,650 in Highland Longshort Healthcare on September 19, 2024 and sell it today you would earn a total of 4.00 from holding Highland Longshort Healthcare or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Massmutual Select Mid vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Massmutual Select Mid |
| Highland Longshort |
Massmutual Select and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Highland Longshort
The main advantage of trading using opposite Massmutual Select and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort's long position.| Massmutual Select vs. Tiaa Cref Real Estate | Massmutual Select vs. Fidelity Real Estate | Massmutual Select vs. Nuveen Real Estate | Massmutual Select vs. Deutsche Real Estate |
| Highland Longshort vs. Virtus Convertible | Highland Longshort vs. Rationalpier 88 Convertible | Highland Longshort vs. Putnam Convertible Incm Gwth | Highland Longshort vs. Advent Claymore Convertible |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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