Correlation Between Massmutual Premier and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Massmutual Premier and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Ep Emerging.
Diversification Opportunities for Massmutual Premier and Ep Emerging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and EPEIX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Global and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Ep Emerging go up and down completely randomly.
Pair Corralation between Massmutual Premier and Ep Emerging
Assuming the 90 days horizon Massmutual Premier Global is expected to generate 1.02 times more return on investment than Ep Emerging. However, Massmutual Premier is 1.02 times more volatile than Ep Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.22 per unit of risk. If you would invest 1,107 in Massmutual Premier Global on September 3, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Premier Global or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Global vs. Ep Emerging Markets
Performance |
| Timeline |
| Massmutual Premier Global |
| Ep Emerging Markets |
Massmutual Premier and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Ep Emerging
The main advantage of trading using opposite Massmutual Premier and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Massmutual Premier vs. The Hartford Emerging | Massmutual Premier vs. Ep Emerging Markets | Massmutual Premier vs. Transamerica Emerging Markets | Massmutual Premier vs. Western Assets Emerging |
| Ep Emerging vs. Franklin Mutual Global | Ep Emerging vs. Templeton Growth Fund | Ep Emerging vs. Franklin Real Estate | Ep Emerging vs. HUMANA INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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