Correlation Between Massmutual Select and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Calvert 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 Calvert 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 Calvert Global Energy, you can compare the effects of market volatilities on Massmutual Select and Calvert 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Calvert Global.
Diversification Opportunities for Massmutual Select and Calvert Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Massmutual and Calvert is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Mid and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Massmutual Select i.e., Massmutual Select and Calvert Global go up and down completely randomly.
Pair Corralation between Massmutual Select and Calvert Global
Assuming the 90 days horizon Massmutual Select Mid is expected to generate 0.88 times more return on investment than Calvert Global. However, Massmutual Select Mid is 1.13 times less risky than Calvert Global. It trades about 0.06 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.01 per unit of risk. If you would invest 1,738 in Massmutual Select Mid on September 5, 2024 and sell it today you would earn a total of 546.00 from holding Massmutual Select Mid or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Mid vs. Calvert Global Energy
Performance |
| Timeline |
| Massmutual Select Mid |
| Calvert Global Energy |
Massmutual Select and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Calvert Global
The main advantage of trading using opposite Massmutual Select and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Calvert 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Massmutual Select vs. Calvert Global Energy | Massmutual Select vs. Dreyfus Natural Resources | Massmutual Select vs. Firsthand Alternative Energy | Massmutual Select vs. Jennison Natural Resources |
| Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Developed Market | Calvert Global vs. Calvert Short Duration | Calvert Global vs. Calvert International Responsible |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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