Correlation Between Mfs Value and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Massmutual Select 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 Mfs Value and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and Massmutual Select Small, you can compare the effects of market volatilities on Mfs Value and Massmutual Select 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 Mfs Value with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Massmutual Select.
Diversification Opportunities for Mfs Value and Massmutual Select
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Massmutual is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and Mfs Value 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 Mfs Value Fund are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Small has no effect on the direction of Mfs Value i.e., Mfs Value and Massmutual Select go up and down completely randomly.
Pair Corralation between Mfs Value and Massmutual Select
Assuming the 90 days horizon Mfs Value is expected to generate 2.17 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Mfs Value Fund is 2.0 times less risky than Massmutual Select. It trades about 0.31 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 979.00 in Massmutual Select Small on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Massmutual Select Small or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. Massmutual Select Small
Performance |
| Timeline |
| Mfs Value Fund |
| Massmutual Select Small |
Mfs Value and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Massmutual Select
The main advantage of trading using opposite Mfs Value and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Mfs Value vs. Locorr Market Trend | Mfs Value vs. Aqr Long Short Equity | Mfs Value vs. Vanguard Developed Markets | Mfs Value vs. Doubleline Emerging Markets |
| Massmutual Select vs. Alpsalerian Energy Infrastructure | Massmutual Select vs. Jennison Natural Resources | Massmutual Select vs. Energy Basic Materials | Massmutual Select vs. Icon Natural Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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