Correlation Between Massmutual Premier and Blue Current
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Blue Current 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 Premier and Blue Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Global and Blue Current Global, you can compare the effects of market volatilities on Massmutual Premier and Blue Current 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 Premier with a short position of Blue Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Blue Current.
Diversification Opportunities for Massmutual Premier and Blue Current
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Massmutual and Blue is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Global and Blue Current Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Current Global and Massmutual Premier 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 Premier Global are associated (or correlated) with Blue Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Current Global has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Blue Current go up and down completely randomly.
Pair Corralation between Massmutual Premier and Blue Current
Assuming the 90 days horizon Massmutual Premier is expected to generate 2.13 times less return on investment than Blue Current. In addition to that, Massmutual Premier is 2.31 times more volatile than Blue Current Global. It trades about 0.02 of its total potential returns per unit of risk. Blue Current Global is currently generating about 0.1 per unit of volatility. If you would invest 1,236 in Blue Current Global on September 1, 2024 and sell it today you would earn a total of 393.00 from holding Blue Current Global or generate 31.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Massmutual Premier Global vs. Blue Current Global
Performance |
| Timeline |
| Massmutual Premier Global |
| Blue Current Global |
Massmutual Premier and Blue Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Blue Current
The main advantage of trading using opposite Massmutual Premier and Blue Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Blue Current 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 Blue Current will offset losses from the drop in Blue Current's long position.| Massmutual Premier vs. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap |
| Blue Current vs. Investec Emerging Markets | Blue Current vs. Origin Emerging Markets | Blue Current vs. Eagle Mlp Strategy | Blue Current vs. Pace International Emerging |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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