Correlation Between Massmutual Premier and Templeton Emerging
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Templeton 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 Templeton 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 Templeton Emerging Markets, you can compare the effects of market volatilities on Massmutual Premier and Templeton 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 Templeton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Templeton Emerging.
Diversification Opportunities for Massmutual Premier and Templeton Emerging
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and Templeton is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Global and Templeton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging 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 Templeton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Templeton Emerging go up and down completely randomly.
Pair Corralation between Massmutual Premier and Templeton Emerging
Assuming the 90 days horizon Massmutual Premier Global is expected to generate 1.7 times more return on investment than Templeton Emerging. However, Massmutual Premier is 1.7 times more volatile than Templeton Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Templeton Emerging Markets is currently generating about -0.15 per unit of risk. If you would invest 1,106 in Massmutual Premier Global on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Massmutual Premier Global or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Global vs. Templeton Emerging Markets
Performance |
| Timeline |
| Massmutual Premier Global |
| Templeton Emerging |
Massmutual Premier and Templeton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Templeton Emerging
The main advantage of trading using opposite Massmutual Premier and Templeton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Templeton 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 Templeton Emerging will offset losses from the drop in Templeton Emerging'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 |
| Templeton Emerging vs. Mutual Of America | Templeton Emerging vs. Fidelity Small Cap | Templeton Emerging vs. Palm Valley Capital | Templeton Emerging vs. Pace Smallmedium Value |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |