Correlation Between Mesirow Financial and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial 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 Mesirow Financial and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial High and Massmutual Select T, you can compare the effects of market volatilities on Mesirow Financial 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 Mesirow Financial with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Massmutual Select.
Diversification Opportunities for Mesirow Financial and Massmutual Select
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesirow and Massmutual is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Mesirow Financial 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 Mesirow Financial High 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 has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Massmutual Select go up and down completely randomly.
Pair Corralation between Mesirow Financial and Massmutual Select
Assuming the 90 days horizon Mesirow Financial High is expected to generate 0.2 times more return on investment than Massmutual Select. However, Mesirow Financial High is 5.03 times less risky than Massmutual Select. It trades about 0.24 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.03 per unit of risk. If you would invest 695.00 in Mesirow Financial High on November 1, 2024 and sell it today you would earn a total of 164.00 from holding Mesirow Financial High or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mesirow Financial High vs. Massmutual Select T
Performance |
| Timeline |
| Mesirow Financial High |
| Massmutual Select |
Mesirow Financial and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Massmutual Select
The main advantage of trading using opposite Mesirow Financial and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial 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.| Mesirow Financial vs. Blackrock Large Cap | Mesirow Financial vs. Dodge Cox Stock | Mesirow Financial vs. Fidelity Large Cap | Mesirow Financial vs. Tiaa Cref Large Cap Value |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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