Correlation Between Mfs Lifetime and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime 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 Lifetime 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 Lifetime 2060 and Massmutual Select Diversified, you can compare the effects of market volatilities on Mfs Lifetime 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 Lifetime with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Massmutual Select.
Diversification Opportunities for Mfs Lifetime and Massmutual Select
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Massmutual is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2060 and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Mfs Lifetime 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 Lifetime 2060 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 Mfs Lifetime i.e., Mfs Lifetime and Massmutual Select go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Massmutual Select
Assuming the 90 days horizon Mfs Lifetime 2060 is expected to generate 0.77 times more return on investment than Massmutual Select. However, Mfs Lifetime 2060 is 1.3 times less risky than Massmutual Select. It trades about -0.02 of its potential returns per unit of risk. Massmutual Select Diversified is currently generating about -0.13 per unit of risk. If you would invest 1,737 in Mfs Lifetime 2060 on September 12, 2024 and sell it today you would lose (3.00) from holding Mfs Lifetime 2060 or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2060 vs. Massmutual Select Diversified
Performance |
| Timeline |
| Mfs Lifetime 2060 |
| Massmutual Select |
Mfs Lifetime and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Massmutual Select
The main advantage of trading using opposite Mfs Lifetime and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime 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 Lifetime vs. Ab All Market | Mfs Lifetime vs. Transamerica Emerging Markets | Mfs Lifetime vs. Siit Emerging Markets | Mfs Lifetime vs. Calvert Developed Market |
| Massmutual Select vs. Origin Emerging Markets | Massmutual Select vs. Ashmore Emerging Markets | Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Dws 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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