Correlation Between Massmutual Select and Ab Global
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Ab Global 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 Select and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Mid and Ab Global Bond, you can compare the effects of market volatilities on Massmutual Select and Ab Global 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 Select with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Ab Global.
Diversification Opportunities for Massmutual Select and Ab Global
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and ANAGX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Mid and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Massmutual Select 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 Select Mid are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Massmutual Select i.e., Massmutual Select and Ab Global go up and down completely randomly.
Pair Corralation between Massmutual Select and Ab Global
Assuming the 90 days horizon Massmutual Select Mid is expected to generate 3.44 times more return on investment than Ab Global. However, Massmutual Select is 3.44 times more volatile than Ab Global Bond. It trades about 0.08 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.06 per unit of risk. If you would invest 1,925 in Massmutual Select Mid on September 14, 2024 and sell it today you would earn a total of 338.00 from holding Massmutual Select Mid or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Massmutual Select Mid vs. Ab Global Bond
Performance |
| Timeline |
| Massmutual Select Mid |
| Ab Global Bond |
Massmutual Select and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Ab Global
The main advantage of trading using opposite Massmutual Select and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Massmutual Select vs. Ab Government Exchange | Massmutual Select vs. Ubs Money Series | Massmutual Select vs. Franklin Government Money | Massmutual Select vs. Chestnut Street Exchange |
| Ab Global vs. James Balanced Golden | Ab Global vs. Gabelli Gold Fund | Ab Global vs. Fidelity Advisor Gold | Ab Global vs. International Investors Gold |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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